From this year 2015 a new definition of the exemption will be created in the statement of Income Tax of Individuals for taxpayers over 65 years old.This exemption has repercussions on capital gains derived from the transfer of any property of their estate, provided that the total amount allocated within 6 months to a life annuity, with a limit of 240,000 €.Additional requirements:

  • The annuity contract must be signed by the taxpayer and an insurance company.
  • The annuity must be made within 6 months from the date of transfer.
  • The annuity must have annual periodicity or less than a year, the payment must be received within one year, and that revenues must not vary by more than 5% from one year to the next.
  • The taxpayer must notify the insurer that the annuity is a contracted reinvestment of proceeds from the transfer of assets.

If you exceed the limit (240.000 €) or partial reinvestment, only the proportional part of the capital gains obtained is exempt.In case of breach of any of the requirements, the capital gains obtained must be allocated to the year of their production, by supplementary declaration and the payment of interest on late payments. It should be noted that in addition to the above exemption, the exemption remains for transmission of residence for people over 65 years old, without limit and only with the following requirements:

  • The taxpayer is over 65 at the time of transmission.
  • That the transmitted dwelling be the residence of the taxpayer, or had been up to two years before its transmission.