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A taxpayer inquired whether the reinvestment exemption for the primary residence could be applied when constructing a new home on land owned by her daughter. The Directorate General for Taxes (DGT) ruled that for the new property to be considered a primary residence, the taxpayer must hold ownership of both the land and the building.
This ruling clarifies that partial ownership or surface rights are insufficient to qualify for the reinvestment exemption; full title to both the land and the structure is mandatory.
The tax team reviews your specific situation.
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