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V0444-23 27 February 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for primary residence requires job transfer to necessitate change of domicile

A taxpayer has enquired whether the exemption for reinvestment in a primary residence can be applied if their home is sold before completing three years of residency due to a potential job transfer. The DGT states that to waive the three-year period, the circumstance must necessarily require a change of domicile.

The question raised

Possibility of applying the exemption for reinvestment in a habitual residence without having resided in the current residence for at least a three-year period due to a job transfer.

The DGT's ruling

For a dwelling to be considered habitual without having completed the three-year period, circumstances must occur that necessarily require a change of residence, such as a job transfer. The term 'necessarily' implies that the change is not a voluntary option or for convenience, but an unavoidable obligation. The assessment of whether a change of employment effectively necessitates a change of residence is a question of fact that must be determined by the management and inspection bodies through the assessment of the evidence provided.

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