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A taxpayer inquired whether selling a property previously used as their habitual residence up to 2018, but briefly reoccupied before selling, would qualify for reinvestment exemption. The DGT responded that the three-year residence period after return was not met, so the property did not regain its status as habitual residence.
The ruling clarifies that a property loses its habitual residence status if the required three-year effective residence period after reoccupation is not fulfilled.
The tax team reviews your specific situation.
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