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V0288-23 15 February 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the property ceased to be a primary residence more than two years before the sale

A taxpayer inquired whether they could apply the reinvestment exemption for a primary residence after selling a house that had been their home until their divorce in 2016, having purchased a new one in 2017. The DGT ruled that this is not possible because the transferred property was not a primary residence at the time of sale nor in the two years preceding it.

The question raised

Possibility of applying the exemption for reinvestment in a primary residence for Personal Income Tax purposes.

The DGT's ruling

For the gain from the sale of the primary residence to be exempt, the residence must have been the primary residence at the time of the transfer or on any day during the two preceding years. In this case, as it ceased to be the primary residence in 2016 due to the adjudication of use to the former spouse, the requirement of habitual residence is not met for the sale carried out in 2022. Therefore, the capital gain will not be exempt and will be included in the savings tax base.

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