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V0354-25 19 March 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption requires housing move to be necessary, not voluntary

A taxpayer asks whether they can apply the reinvestment exemption for habitual residence after selling their home before three years of marriage and having children. The DGT responds that the move must be necessary, not a voluntary choice to shorten residence period.

The question raised

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

The DGT's ruling

For a residence to be considered habitual before the three-year period, the change of domicile must respond to circumstances that necessarily require it, as mere will or convenience is insufficient. Marriage alone does not justify the change if no other fact occurs that makes it mandatory. Moving to a residence with better distribution or location due to family needs is considered a voluntary decision and not an analogous circumstance that allows for an exception to the period of residence.

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