In this request, the applicant asks to be provided with Binding Information on the requirements to be able to benefit from the exclusion from taxation of gains from the onerous transfer of real estate intended for own and permanent habitation, provided for in Article 10(5) of the IRS Code.
The applicant acquired a property by donation from his grandparents, which he intended to use as his own permanent home.
However, due to ignorance, he did not change his tax residence for this property, and kept it at his grandparents' house, with whom he had lived until then.
He sold the property and, as such, wonders if he can use the amount received to buy another property for his own permanent residence, excluding the capital gains obtained, stating that although he didn't change his tax residence, he has proof that he now lives in the property.
Since the applicant never had a fiscal domicile in the property he sold, the conditions for benefiting from the reinvestment scheme set out in Article 10(5) of the IRS Code have not been met, and the sale is taxed under the general terms.
