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V0396-21 25 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment and over-65 exemptions unavailable if property ceased to be primary residence more than two years ago

A taxpayer over the age of 65 inquired whether they could apply for the reinvestment exemption or the over-65 exemption after selling a property that had ceased to be their primary residence due to a divorce occurring more than two years prior. The DGT ruled that neither exemption applies because the property no longer qualifies as a primary residence.

The question raised

Taxation of the capital gain derived from the sale. In particular, whether the reinvestment exemption applies or, in the event of not acquiring a new habitual dwelling, whether the exemption provided for in article 33.4.b) of the LIRPF applies.

The DGT's ruling

To apply the exemptions, the dwelling must be considered habitual at the time of the transfer or on any day during the two preceding years. As more than two years have elapsed since the taxpayer ceased to reside in the dwelling following the divorce, the requirement of habituality under article 41 bis.3 of the RIRPF is not met. Therefore, neither the reinvestment exemption nor the exemption for persons over 65 years of age is applicable.

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