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V0607-25 1 April 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Reinvestment exemption requires domicile change to be a mandatory necessity

A taxpayer asks whether neighbourly harassment and health issues allow them to consider their home as habitual before three years to claim the reinvestment exemption. The DGT states that these circumstances are not specifically provided for and that the assessment of whether a domicile change is a necessary requirement lies with the Tax Administration.

The question raised

Whether the circumstances described above constitute an exempting cause for the 3-year period required by Law to consider the dwelling as habitual and, if so, whether one can benefit from the exemption for reinvestment in a habitual dwelling.

The DGT's ruling

To exempt the three-year residency period, the circumstance must necessarily require a change of domicile, which implies that the taxpayer cannot choose or that the change is mandatory and not voluntary. Neighbor harassment is not specifically contemplated as a cause for necessary change in the regulations. The Tax Administration must assess whether, in the specific case, the severity of the facts implies an impossibility of remaining in the dwelling or if it is a voluntary decision of the taxpayer.

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