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V0159-23 6 February 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The reinvestment exemption cannot be applied if the sold property is not the primary residence nor was it during the previous two years

A taxpayer inquires whether the property they plan to sell after retirement can be considered a primary residence to apply the reinvestment exemption. The DGT responds that it cannot, as it has not been their primary residence either at the time of sale or during the two preceding years.

The question raised

Whether the property in Chiclana de la Frontera, at the time of moving to it following retirement, holds the status of a primary residence. If so, whether the reinvestment exemption for a primary residence would be applicable.

The DGT's ruling

To apply the reinvestment exemption, the transferred property must be the primary residence at the time of sale or have been so during the previous two years. In this case, as the taxpayer has not resided in it since 2017, it does not meet the primary residence requirement. However, a reduction could be applied under the ninth transitional provision of the LIRPF if the property was acquired before December 31, 1994.

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