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V0548-22 18 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption unavailable if sold property ceased to be primary residence more than two years ago

The taxpayer inquired about calculating the acquisition value of a property following the dissolution of a co-ownership and whether the reinvestment exemption could be applied. The DGT ruled that the acquisition value must include any compensation paid and debt assumed, and that the exemption is not applicable because the property ceased to be the taxpayer's primary residence more than two years ago.

The question raised

For the purposes of calculating the capital gain obtained, what is the acquisition value, and should the income derived from the leasing of the dwelling be taken into account in its determination.

The DGT's ruling

The acquisition value of the portion of the dwelling obtained through the dissolution of a co-ownership is the sum of the cash compensation, the mortgage debt assumed, and the expenses and investments, which must be reduced by the tax-deductible depreciation of the lease period. The reinvestment exemption is not applicable if the transferred dwelling was not the primary residence at the time of sale nor was it so in the two years prior to the sale.

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