Back to index
V0212-21 10 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption for principal residence may apply if new home was purchased up to two years before selling the old one

The taxpayer asks whether the reinvestment exemption can be applied after having purchased a new home prior to selling the previous one. The DGT rules that this is possible, provided that the requirements for reinvestment and the classification of the property as a principal residence are met.

The question raised

Whether the exemption for reinvestment in a primary residence is applicable.

The DGT's ruling

The exemption for reinvestment requires that the gain from the transfer of the primary residence be reinvested in the acquisition of a new primary residence. The acquisition of the new residence may take place within a period of two years prior to or following the transfer of the preceding one. For the exemption to be total, the total amount obtained must be reinvested; if the amount is lower, the exemption shall be partial. Both residences must comply with the primary residence requirements established in the Regulations.

Book your free first meeting