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The applicant inquired whether the primary residence reinvestment exemption could be applied after swapping their share of a property for another. The Directorate General for Taxes (DGT) ruled that this is possible provided both properties meet the requirements for a primary residence and the proceeds are reinvested, even if through a payment in kind.
This ruling clarifies that property swaps (permuta) can qualify for tax relief under the reinvestment scheme, provided the criteria for primary residence status are met and the value is correctly reinvested.
The tax team reviews your specific situation.
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