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2021 Wealth Tax practical guide.

10. Taxpayer's principal residence

Regulations: Art. 4.Cuatro Wealth Tax Act

The taxpayer's habitual residence is exempt, to a maximum sum of 300,000 euros.

The exemption shall be applied by the taxable person who holds the right of ownership, whether full or shared, or a real right of use or enjoyment over the main residence (usufruct, use or room).

Taxpayers who are holders of rights that do not give rise to the use and enjoyment of the habitual residence (such as the it gives ownership, which only confers on the holder the power to dispose of the property, but not its use and enjoyment), and cannot apply the exemption from the main residence.

For the purposes of applying the exemption, it is considered primary residence that in which the declarant resides for a continuous period of three years. However, it will be understood that the property was of that nature when, despite the expiry of this period, the death of the taxpayer or circumstances that necessarily require the change of residence, such as separation of marriage, employment transfer, obtaining the most advantageous or similar employment benefits or others.