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V0517-26 5 March 2026 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Funds from loan for new primary residence may be considered reinvested

The consultant sold their primary residence, paid off the existing mortgage, and used the remainder to purchase 50% of a new property through external financing. The tax authority confirms that funds from loans can be validly treated as reinvested for exemption purposes.

The question raised

Amounts that are considered reinvested amounts for the purposes of the exemption for reinvestment in a primary residence.

The DGT's ruling

For the reinvestment exemption, the reinvested amount includes the money paid for the new dwelling within the two-year period, regardless of whether it is financed with own funds or through mortgage or personal loans. It is not necessary to use the entirety of the money obtained from the sale of the previous dwelling, as it is sufficient to apply for the same purpose money borrowed from a third party.

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