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V0512-22 14 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for main residence applies whether the new property is purchased before or after the sale of the old one

The taxpayer asks whether the reinvestment exemption can be applied if the new home is purchased before selling the current one, and if the financing method affects the outcome. The DGT rules that the exemption applies regardless of whether the purchase precedes or follows the sale, and that the method of financing does not affect the amount to be reinvested.

The question raised

Whether the exemption for reinvestment in a primary residence is applicable, regardless of whether the purchase is made prior to the sale, and whether the new residence is financed with a mortgage loan or with personal savings.

The DGT's ruling

The exemption requires reinvesting the amount obtained in the acquisition of a new primary residence within a period of two years prior to or following the transfer. If the new residence is acquired beforehand, the purchase must be made within the two years preceding the sale of the former. The amount to be reinvested is the acquisition value of the new residence, regardless of whether it is financed through a mortgage loan or equity.

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