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V0519-20 4 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Portion of home used for professional activity excluded from reinvestment relief

The taxpayer inquired whether the room used for professional activities must be excluded when applying reinvestment relief for a primary residence. The Directorate General for Taxes (DGT) ruled that the relief only applies to the proportional amount reinvested in the dwelling, excluding the portion allocated to economic activity.

The question raised

Whether, for the purposes of applying the reinvestment exemption, the room of the dwelling that will be used for professional activity must be taken into account.

The DGT's ruling

In order for the capital gain to be exempt, it is necessary to reinvest the total amount in the acquisition or rehabilitation of a new primary residence. The exemption shall be applied proportionally to the amount reinvested in the dwelling, excluding the portion thereof that is to be used for the conduct of professional activity.

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