Back to index
V0242-21 11 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for primary residence may apply if the property was the main residence in the two preceding years

A taxpayer has inquired whether they can claim the reinvestment exemption after selling a property that had been leased under a rent-to-buy agreement. The Directorate General for Taxes (DGT) has ruled that the exemption applies if the sold property was the taxpayer's primary residence at the time of transfer or on any day during the two years prior to the sale.

The question raised

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

The DGT's ruling

For the exemption to apply, the transferred property must be the taxpayer's primary residence at the time of sale or must have been so on any day during the two years prior to the transfer. The new residence must be acquired within a period of two years preceding or following the sale. The exemption requires that the total amount obtained be reinvested in the acquisition of the new primary residence.

Book your free first meeting