Spain has introduced new measures aimed at making property sales easier for homeowners aged 65 and over, as well as individuals with severe or significant dependency. Under housing decrees approved by the Council of Ministers on October 6, eligible homeowners may benefit from an exemption from personal income tax (IRPF) when selling their former primary residence.
Under existing regulations, homeowners over 65 can sell their main residence without paying capital gains tax through IRPF. However, the property must generally be their current primary residence or have held that status within the two years preceding the sale.
The newly approved measures aim to provide greater flexibility for elderly homeowners who have moved into a care facility or the home of a family member due to age or dependency. Previously, selling the property more than two years after moving out could result in the loss of the tax exemption.
Under the proposed changes, a property may retain its qualifying status if the owner moved directly from their primary residence to a specialised care facility or to the home of a relative within the third degree of kinship due to age or dependency.
This means that eligible homeowners could sell their former residence without paying personal income tax on the capital gain, even if several years have passed since they moved out.
The measure could be particularly beneficial for older property owners across Spain, including the Costa del Sol, offering greater financial flexibility when selling a family home.
However, eligibility remains subject to specific legal requirements, and the decrees must complete the applicable parliamentary process. Homeowners considering a sale should seek professional tax advice to confirm whether the exemption applies to their circumstances.
Source: Madrid Secreto, October 2026
