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A taxpayer inquired whether funds from the sale of their primary residence could be placed in conservative investment funds before purchasing a new home. The Directorate-General for Taxes (DGT) ruled that this is permissible, provided the equivalent amount is reinvested within a two-year period.
This ruling clarifies that the temporary placement of sale proceeds in investment vehicles does not disqualify the taxpayer from claiming the reinvestment relief, provided the reinvestment requirement is met within the statutory timeframe.
The tax team reviews your specific situation.
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