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V0576-21 11 March 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Two-year deadline for primary residence reinvestment exemption suspended between March and May 2020

A query was raised regarding whether the extension of the COVID-19 state of alarm affected the two-year period for reinvesting proceeds from the sale of a primary residence. The Directorate-General for Taxes (DGT) ruled that the calculation of this period was only suspended from 14 March 2020 to 30 May 2020.

The question raised

Whether the new extension of the state of alarm declared due to the COVID-19 epidemic, approved by Royal Decree 956/2020 from November 9, 2020, to May 9, 2021, affects the calculation of the two-year period referred to in Article 38 of the LIRPF regarding the exemption for reinvestment in the primary residence.

The DGT's ruling

Due to the regulations on urgent measures for COVID-19, the two-year period for the reinvestment of capital gains from the primary residence was only suspended from the entry into force of Royal Decree 463/2020, on March 14, 2020, until May 30, 2020. Outside of that period, the calculation of the period continues its normal course.

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