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V0547-22 18 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Property not deemed primary residence if not occupied for three years, unless relocation is mandatory

A taxpayer sold her home and reinvested the proceeds into a new one, but had to move abroad due to her husband's job transfer before the three-year period elapsed. The Directorate General of Taxes (DGT) rules that a property is not considered a primary residence if the three-year requirement is not met, unless it can be proven that the change of residence was an imperative necessity rather than a voluntary choice.

The question raised

Possibility of considering that the acquired dwelling has attained the status of a primary residence given the prevailing circumstances.

The DGT's ruling

For the reinvestment exemption, the dwelling must be a primary residence, which requires continuous residence for at least three years. This period may be excepted if circumstances arise that necessarily require a change of domicile, such as a job transfer. The application of the rule requires that the change of domicile be an obligation and not an option for the taxpayer's convenience. It is the responsibility of the Administration to assess whether the specific circumstances necessitate such a change.

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