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A taxpayer has enquired whether the exemption for reinvestment in a primary residence can be applied by using the proceeds from the sale of an old home to repay the mortgage on a new home previously acquired. The Directorate General for Taxes (DGT) has confirmed that this is possible and that the reinvested amount is the acquisition value of the new home (based on the ownership percentage), regardless of whether the funds are used for mortgage repayment or as equity.
The tax team reviews your specific situation.
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