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V0625-20 31 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Two-year deadline for main residence reinvestment exemption cannot be extended

Taxpayers have enquired whether the two-year period to reinvest proceeds from the sale of their main residence can be extended due to construction delays beyond their control. The Directorate General for Taxes (DGT) has ruled that the regulations do not provide for any extensions to this deadline.

The question raised

Possibility of applying the reinvestment exemption if the two-year period for effecting the reinvestment is extended, considering delays not attributable to the applicants.

The DGT's ruling

To apply the exemption, the legal acquisition of the new residence must occur within the two years following the transfer of the primary residence. In the case of dwellings under construction, the acquisition is deemed to have occurred when the delivery or transfer of the property takes place (handover of keys, possession, or public deed). The regulation does not contemplate scenarios for extending the two-year period due to delays in the execution of works.

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