IRPF Exemption for Over 65s Selling Their Property in Cataluña

The State Tax Administration Agency (AEAT) published an informational notice on 23 de octubre de 2026, ratifying the criteria for qualifying for the Income Tax exemption on capital gains when transferring a main residence. The communication clarifies the application of article 33.4.b) of Law 35/2006 and highlights that taxpayers over 65 years old are not obliged to reinvest the capital obtained into a new property to benefit from this tax incentive.

What's Changing

The AEAT's announcement does not constitute a legal modification in the Official State Gazette (BOE), but rather an administrative reminder that establishes the criterion for tax inspections regarding recurring errors in sales and donations. Hacienda precisely sets out the three concurrent requirements:

• Continuous Full Ownership: The taxpayer must have held full ownership for at least three uninterrupted years. If ownership is split between bare owner and usufructuary, neither can qualify for the exemption. However, it is applicable if the full owner transfers bare ownership and retains a lifetime usufruct.
• Continuous Residency: The property must have been effectively occupied for a minimum period of three years, or maintained this status within the two years prior to the sale date.
• No Reinvestment Obligation: Unlike taxpayers under 65, who must use the full amount obtained to purchase another main residence to offset the tax, those over 65 can freely dispose of the money received.

Who Is Affected

This ratification concerns individuals with tax residency in Spain who have reached 65 years of age on the exact date of accrual (the day of signing the public deed of transfer before a notary), as well as individuals in severe or major dependency situations.

If the property belongs to a marital community or is co-owned, and only one of the spouses is 65 years old on the date of the deed, the capital gain corresponding to the younger spouse is subject to tax in their income tax return, unless the latter opts to reinvest their share in a new main residence.

To illustrate the economic impact, let's consider an example: a 66-year-old property owner from Sabadell sells their main residence for 270.000 euros, which was acquired twenty years ago for a tax cost of 110.000 euros. The capital gain amounts to 160.000 euros. For a seller under 65 who does not reinvest, the tax liability on IRPF savings rates (between 19 % and 28 %) would exceed 36.000 euros. Upon reaching 65 years of age and fulfilling the three years of full ownership, the IRPF tax is reduced to cero euros.

What This Means If You Own a Property in Cataluña

In Cataluña, the definition of the tax base and IRPF exemptions fall exclusively under the State's jurisdiction (article 149.1.14ª of the Constitution), meaning the Generalitat de Catalunya does not have the legislative power to restrict this state benefit. The declaration of 'stressed residential market areas' under Law 12/2023 also does not affect this tax exemption, as this regulation only applies to rental income containment.

However, property transactions in municipalities in Vallès or Barcelona maintain additional tax obligations that should not be confused:

• Municipal Capital Gains Tax (IIVTNU): This local tax levies the increase in value of urban land and is settled with the respective city council (such as Terrassa, Sabadell or Granollers). The state IRPF exemption does not nullify the municipal capital gains tax, which is only avoided if it can be justified that the land did not experience a patrimonial increase.
• Lifetime Gifts: If the transfer is made free of charge in favour of children, the donor over 65 years old is exempt from IRPF on the gain, but the person receiving the property must settle the Inheritance and Gift Tax (ISD) with the Agència Tributària de Catalunya (ATC), in accordance with the rates of Law 19/2010.

What To Do Now

If you plan to sell your property in Vallès or anywhere in Cataluña and are nearing the legal age, consider these steps before committing to the transaction:

1. Monitor the Notary Signing Date: Ensure that the public deed is granted once you have reached 65 years of age. The deposit contract (arras) or preliminary reservation does not mark the accrual of the tax.
2. Verify Property Registration: Request a Land Registry extract (nota simple) to confirm you have held 100 % full ownership for at least three years and that there are no unconsolidated property divisions.
3. Prove Effective Residency: Keep registry certificates and basic utility bills (electricity, water, and gas) that demonstrate continuous use as your main residence.
4. Review the Circumstances of All Owners: If the property belongs to several people, it is advisable to check each person's situation with a professional before going to the notary to avoid unwanted supplementary tax assessments.