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V0087-23 23 January 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption denied if property was not primary residence at time of sale or during the preceding two years

A taxpayer inquired whether a property rented out following a job change and subsequent divorce could qualify as a primary residence for the reinvestment exemption. The DGT ruled that it does not, as the taxpayer ceased residing there in 2016 and the sale was scheduled for 2023.

The question raised

Question posed: Whether, in the event of proceeding with the sale of their property in the year 2023, it is considered habitual for the purposes of applying the reinvestment exemption in a habitual residence.

The DGT's ruling

To apply the exemption, the transferred property must be the habitual residence at the time of sale or have been so in the two preceding years. The habitual residence is that which is resided in continuously for at least three years, unless circumstances such as job relocation or separation occur that justify the change before that period. In this case, as they have not resided in the property since 2016, it does not meet the requirement of habituality for a sale in 2023.

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