Skip to content
Back to index
V0153-24 16 February 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption denied if the sold property was not a primary residence in the two preceding years

A taxpayer sold a property that had been rented out and could not serve as a primary residence due to its condition following an eviction. The Tax Agency ruled that since the property was neither a primary residence at the time of sale nor during the two years prior, the reinvestment exemption does not apply.

The question raised

Possibility of applying the exemption for reinvestment in a primary residence.

The DGT's ruling

To apply the exemption for reinvestment, both the transferred and the acquired property must be primary residences. The transferred property is considered a primary residence if it has constituted the residence for at least three years or if exceptional circumstances are met. It is not considered a primary residence if it has not held such character during the two years prior to the transfer.

Book your free first meeting