Exemption for the sale of homes to people over 65

In Spain nowadays more people over 65 years decide to sell a house that they has in their name. It is necessary to know that the sale of the habitual residence is subjected to a fiscal norm, that liberates to pay the IRPF, a little different from the rest of the transactions.
If you are in this age range or you are directly affected by a similar case, we invite you to continue reading. Especially if you are near 65 years. If you are thinking of selling your house to buy another, we recommend you read our article on reinvestment in habitual housing so that you find out the deductions of this operation.

Equity gain exemption for over 65s

Among the exemptions that the law provides when transferring a habitual residence, we find one that affects people over 65 years. Specifically, article 41.bis of RD 439/2007 of March 30 exempt from paying the IRPF for the sale of his house to this group.
For that reason, if you are thinking of selling your house and you are 60 years old, be intelligent and wait until you reach 65. More than ever, the wait will be worth it.

What is an habitual residence?

A habitual residence is one that constitutes, for fiscal purposes, the residence for a continuous period of at least three years. For example, if a person residing in a city decide to go to his mountain home and after five years decides to sell his house in the city, that will not be considered an habitual residence.
In the case of selling a non-habitual house, taxes must be paid. Even so, since 2015 there are also exemptions for those over 65 if they allocate the benefits to constitute an annuity.

Have you put the benefit into the IRPF?

Although the equity gain from the sale of the habitual residence is exempt from taxing the IRPF, the transaction must be included in the income statement. Remember that the fact of not having to pay income tax does not mean not paying taxes as the increase in value of land of urban nature or municipal surplus value.

Donation of the habitual residence

It is also common for people over 65 donate their home to their children or grandchildren. In that case, taxes are levied on the buying pary, since it is the one that has an equity gain. However, they are not liquidated through the IRPF, but with the Inheritance and Donations Tax.
If you need advice when you sell or donate your habitual residence and you are over 65, do not hesitate to contact GM Tax. We will study the case with you and find the best solution. In addition, we help you manage your Personal Income Tax (IRPF) or Donation Tax so that you can tax correctly.

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