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A taxpayer inquired whether they could apply the reinvestment exemption after selling their primary residence (held as 50% co-ownership) due to divorce. The Directorate General for Taxes (DGT) ruled that this is possible, provided the amount obtained is reinvested after deducting the outstanding loan principal from the transfer value.
This ruling confirms that marital breakdown is a valid trigger for the reinvestment exemption, allowing taxpayers to mitigate capital gains tax when replacing a primary residence.
The tax team reviews your specific situation.
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