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V0127-24 15 February 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Two-year deadline for main residence reinvestment exemption cannot be extended

A taxpayer inquired whether the deadline to reinvest proceeds from the sale of their main residence could be extended due to unemployment and illness. The Directorate General of Taxes (DGT) ruled that the two-year period is strict and does not allow for extensions based on these grounds.

The question raised

Possibility of extending the period for reinvestment and allowing the capital gain generated in the transfer of the primary residence produced in 2021 to be exempt from taxation, taking into account the described circumstances. In the event that this is not possible, the tax effects of non-compliance.

The DGT's ruling

The exemption requires reinvesting the amount obtained in a new primary residence within a period not exceeding two years from the transfer. If this period is not met, regardless of the causes giving rise to it, the capital gain cannot be exonerated. Non-compliance obliges the filing of a supplementary tax return for the year of the sale, including the gain and late payment interest.

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