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Specific Income Manual 2023 for people over 65 years of age

Transfer of habitual residence by people over 65 years of age

Regulations: Articles 33.4 b) and Fifteenth Additional Provision of the Personal Income Tax Law and 41 bis of the Regulations

Capital gains derived from the transfer by people over 65 years of age of the habitual residence are exempt. The exemption also applies if bare ownership is transferred and life usufruct over the home is reserved.

For the application of this exemption, it is understood that the taxpayer is transferring his or her habitual residence when said building constitutes his or her habitual residence at that time or would have had such consideration until any day of the two years prior to the date of transfer.

When the full ownership of a home is divided between the bare owner and the usufructuary, this exemption will not apply to any of them.

Principal Residence item

Regulations: Twenty-third Additional Provision Law Personal Income Tax and 41 bis Regulation. See also article 55.5 of the Personal Income Tax Regulations , in the wording in force as of December 31, 2012.

For tax purposes, the building in which resides for a continuous period of at least three years is considered the taxpayer's habitual residence.

However, it will be understood that the residence had the character of habitual residence, when, despite said period not having elapsed, the death of the taxpayer occurs or other circumstances occur that necessarily require the change of address, such as celebration of marriage, separation marriage, job transfer, obtaining the first job or change of job or other justified analogues.

Furthermore, the home must be inhabited effectively and permanently by the taxpayer himself, within a period of twelve months , counted from the date of acquisition or completion of the works. .

It will be understood that the home does not lose its habitual character when any of the following circumstances occur:

  • When the death of the taxpayer occurs.

  • When other circumstances arise that necessarily prevent the occupation of the home.

  • When the taxpayer enjoys the habitual residence due to position or employment and the acquired one is not used. The twelve-month period will begin to be counted from the date of termination.

When the home has been effectively and permanently inhabited by the taxpayer within a period of twelve months, counted from the date of acquisition or completion of the works, the three-year period to consider it as the taxpayer's habitual residence is will be computed from this last date .