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A person holding the usufruct of part of a property, along with their children who hold the bare ownership, inquired whether they could apply for the reinvestment exemption. The Directorate General for Taxes (DGT) ruled that the exemption requires full ownership, even if held jointly.
This ruling clarifies that taxpayers must hold full ownership (pleno dominio) of the property to qualify for the capital gains tax exemption when reinvesting in a new main residence, excluding those holding only usufruct or bare ownership.
The tax team reviews your specific situation.
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