If you are close to turning 65 and plan to sell your home, you would be wise to wait until you reach that age because the capital gain generated by this sale is exempt from Personal Income Tax. Note that if the home belongs to more than one owner, the exemption from capital gain only applies to owners who are at least 65 years of age.
A second tax exemption can be acquired on the sale of the main residence from the Tax on the Increase in the Value of Urban Land (municipal surplus value). However, this depends on the municipality where the residence is located.
Yet another tax exemption that you can take advantage of if you are nearing 65 is that you may have stocks, funds or other assets that you want to sell in order to supplement your retirement funds, and with which you expect to obtain a capital gain. In these circumstances, you might want to wait until you reach that age and, with the amount obtained from the sale, invest in a retirement income annuity of a maximum of € 240,000 within a period of six months from the date of sale. In this way, you will not be taxed for the capital gain on your Personal Income Tax.
Remember that if a lower amount than that obtained in the sale of the residence is reinvested, only the capital gain that corresponds proportionally to the reinvested amount will be exempt.
This exemption for capital gains in the sale of shares, funds or other assets must be included in the tax income statement for the year in which the sale occurs. In the same way, the sale of the main residence by persons of 65 or more years of age must also be included in the statement.
