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A taxpayer inquired whether the exemption for reinvestment in a primary residence could be applied if rooms are rented out in the new property. The Directorate General for Taxes (DGT) ruled that only the proportional share of the capital gain corresponding to the part of the property used for private purposes can be exempt from tax.
This ruling clarifies that the tax exemption for reinvesting capital gains from a primary residence does not extend to areas of the property used for income-generating activities, such as renting out rooms.
The tax team reviews your specific situation.
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