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V0342-24 12 March 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the sold property was not the main residence in the two preceding years

The taxpayer asks whether they can apply the reinvestment exemption after selling their former main residence to purchase a new one. The DGT rules that this is not possible because the sold property ceased to be the main residence more than two years prior to the sale.

The question raised

Whether, in the event of reinvesting the amount obtained from the sale of the residence in Palma de Mallorca into a new residence, the reinvestment exemption would apply to the capital gain generated.

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 two preceding years. In this case, as residency in the property ceased in 2019 and the sale was subsequently carried out, the requirement of habitual residence required by Article 41 bis of the RIRPF is not met. Therefore, the exemption under Article 38.1 of the LIRPF is not applicable.

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