Overview
- The IRPF exempts capital gains when taxpayers aged 65 or over transfer their habitual residence, and the rule covers donations as well as sales under article 33.4.b of Law 35/2006.
- To qualify, the dwelling must be the donor’s habitual residence—generally occupied for at least three years or considered habitual within the two years prior—and the donor must be at least 65 at the time of transfer.
- The exemption applies only to the donor’s IRPF, while the recipient may still owe regional inheritance and gift tax and the municipal plusvalía where applicable.
- Hacienda and GESTHA say cohabiting in the family home is not treated as a taxable donation, and relatives up to the third degree commonly use such homes in precario without tax consequences.
- Experts caution that free use of non-habitual or high-value properties can draw scrutiny under imputed income or donation theories, so advisers recommend documenting a comodato or setting a symbolic rent as data cross-checks expand.