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The taxpayer sold their primary residence and purchased a new property that includes an annex. They proposed to segregate and sell the swimming pool and changing room area before completing the three-year residency period in the new home. The Directorate-General for Taxes (DGT) ruled that the exemption will not apply to the part of the building that has not attained the status of a primary residence.
This ruling limits the scope of the reinvestment relief for capital gains, clarifying that segregated portions of a property must also meet the residency requirements to qualify for the tax exemption.
The tax team reviews your specific situation.
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