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V0068-19 14 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the sold property was not a primary residence in the previous two years

The taxpayer asks whether they can apply the reinvestment exemption when selling a property that served as their home until their divorce, in order to purchase a new primary residence. The DGT rules that this is not possible because the property did not qualify as a primary residence at the time of sale or during the preceding two years.

The question raised

Whether the taxpayer may avail themselves of the exemption for reinvestment in a habitual residence if they reinvest in the property that will constitute their habitual residence.

The DGT's ruling

To apply the exemption, the transferred property must be the taxpayer's habitual residence at the time of the sale or have been so on any day during the two preceding years. In this case, as more than six years have passed since the property ceased to be the habitual residence due to divorce, this requirement is not met. Therefore, the exemption for reinvestment regarding the capital gain from the transfer is not applicable.

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