HACEINDA ALERT | The Tax Agency notifies all Spaniards who own a flat or a house about personal income tax

2024-01-05 14:23:08

There are situations in which taxpayers can benefit from the sale of your home and be exempt from paying the IRPF. Among them are those over 65 years of age and people in a dependent situationwho are not required to declare the capital gain.

The Tax Agency (AEAT) has issued a statement warning homeowners about their tax obligations upon completing the process of selling their properties. According to the AEAT, there are three taxes that sellers must pay.

The first of them is the well-known Real Estate Tax (IBI), which is divided proportionally between buyer and seller based on the time each has owned the property. The second tax is municipal capital gains, which must be paid within 30 business days after the sale of the home. Finally, sellers must also take into account the Personal Income Tax (IRPF)in which they must report possible capital gains in their next Income Tax Return.

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Notice to homeowners

However, there are situations in which taxpayers can benefit from the sale of their home and be exempt from paying personal income tax. Among them are those over 65 years of age and people in a situation of dependency, who They are not required to declare the capital gain. Also included are those who reinvest the money from the sale in the purchase of another home within a period of two years before or after the operation.

Regarding this option, both the home purchased and the one sold must comply with the condition of being a habitual residence, and the seller must have resided in the home sold for at least three years. If no capital gains have been obtained from the sale of the property, it will not be necessary to declare it in the personal income tax. In addition, there are other ways to obtain exemption from paying personal income tax, such as dación en pago or reinvestment in a primary residence.

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In the case of dation in payment, both the insolvency situation and the lack of other assets in the Declaration must be demonstrated. On the other hand, if the transfer of the habitual residence with reinvestment occurs, it is necessary to express the will to take advantage of this option and ensure that the transferred and/or rehabilitated home meets the requirements to be considered habitual residence.

The Tax Agency has also provided clarification on its website regarding the reinvestment in habitual residence: “In the event that the amount of the reinvestment is less than the total obtained in the sale, only the proportional part of the capital gain that corresponds to the amount actually reinvested under the conditions mentioned above will be excluded from the tax.”

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In addition, it is important to take into account the corresponding boxes in the Income Tax Return. According to the Organization of Consumers and Users (OCU), in 2022, Box 1626 is the place where the cadastral reference must be included in the event that there are economic activities dependent on the transferred addresses and these are accessories to the habitual residence.

The taxpayers They must be aware of their tax obligations when selling a home, including the proportional payment of the IBI, the municipal capital gain and the declaration of possible capital gains in the personal income tax.

However, there are specific cases in which an exemption from paying personal income tax can be obtained, such as in the case of people over 65 years of age, people in a situation of dependency or those who reinvest the money in the purchase of another primary home. Is It is essential to inform yourself about the requirements and correctly complete the corresponding boxes in the Income Tax Return.