If you are 65 years old and you live in Spain, you have a series of advantages and exemption from paying taxes.

With regard to housing, in Spain if you are over 65 years of age, your habitual residence is tax free.

As the Spanish Tax Agency publishes on its website:

"Taxation of the sale of habitual residence by people over 65 years of age or by people in a situation of severe dependency or great dependency

The capital gain obtained in the onerous or lucrative transfer of the habitual residence will be exempt, whether it is transferred in exchange for a capital or if it is transferred in exchange for a rent, temporary or life.

The exemption also applies to the transfer of bare ownership of the habitual residence by its owner over 65 years of age, the latter reserving the life usufruct over said dwelling. "

In other words, if you are 65 or over and decide to sell your residential home in Spain, you do not have to declare what you have earned from the sale in your personal income tax.

As Nuria Salobral;  journalist and head of the markets, finance and weekend section of El Pais newspaper,  published in one of her features:

"The sale of the habitual residence is tax-free as long as the proceeds are reinvested in the purchase of a new one, with the same purpose and within a maximum period of two years. But after 65 years of age, the capital gain from that sale is exempt without any type of condition. " And she emphasizes that a condition is necessary: "that both spouses have reached the age of 65."

You would also be tax-free on the sale of your second home with one condition.

In Spain, if you have already reached 65 years of age, the sale of your house on the beach or in the mountains is tax free. Bear in mind that if the transferred home was acquired by the community of community and only one of the spouses is 65 or over, the exemption will only apply for half of the benefit obtained.

What is the condition for not paying taxes on the sale of your second home?

In addition to being 65 years or older, you have to put the money to a life insurance, for a maximum of 240,000 euros. So with your tax earnings you have to buy this product to supplement what the government pays you with the pension and thus be able to maintain your lifestyle..

Other assets free to be declared if you are over 65 years of age are:

The repayment of a portfolio of funds or the transfer of assets of a business such as a pharmacy or a store.

If you want more information about this, you can read this more detailed article in Economists.

For information on the sale or buying a new home in Costa Blanca, contact Naranja Spain Real Estate.