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V0467-22 10 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Transferred property must be or have been the main residence for the previous two years to qualify for exemption

A taxpayer asks whether they can apply the reinvestment exemption for a main residence after having rented out their home for nine years and recently moving back in. The DGT states that to apply the exemption, the property must be the main residence at the time of sale or have been so during the two preceding years.

The question raised

Whether the exemption for reinvestment in a primary residence is applicable.

The DGT's ruling

For the reinvestment exemption, the transferred property must be the primary residence at the time of transfer or have been considered such on any day during the two preceding years. A primary residence is defined as the property that constitutes the residence for a continuous period of at least three years. In this specific case, if the taxpayer returned to reside in the property in 2021, the primary residence requirement would not be met if the property is sold before three years have elapsed since their return.

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