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V0216-22 9 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption requires the property to be a primary residence for three years or due to circumstances necessitating a move

A taxpayer has enquired whether they can apply for the reinvestment exemption when selling their home, which has been partially rented out for economic reasons. The DGT clarifies that the property must serve as a primary residence for at least three years, unless specific circumstances arise that necessitate a change of domicile.

The question raised

Whether the capital gain derived from the sale of said dwelling is exempt.

The DGT's ruling

For the exemption, the dwelling must be a continuous residence for at least three years, although exceptions are permitted if circumstances arise that necessarily require a change of domicile. The term 'necessarily' implies an obligation that lies beyond the mere will or convenience of the taxpayer. The status of habitual residence is lost when habitual residence or full ownership ceases to coexist. The taxpayer must prove the reality of the facts and the necessity of the change to the Administration through means of proof admitted in Law.

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