Skip to content
Back to index
V0671-19 26 March 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for principal residence applies if new home is acquired up to two years before selling the old one

A taxpayer inquired whether they could apply the reinvestment exemption after purchasing a new home in 2016 and selling their previous one in 2018. The Directorate General for Taxes (DGT) ruled that this is possible, provided all legal deadlines and requirements are met.

The question raised

Whether the reinvestment exemption for the primary residence may be applied.

The DGT's ruling

The reinvestment exemption allows for the non-taxation of the capital gain from the sale of the primary residence if the amount is reinvested in a new one. The acquisition of the new residence may take place within the period of two years prior to or following the transfer of the previous one. In this case, by purchasing the new residence on October 24, 2016, and selling the old one on October 24, 2018, the two-year period is met.

Book your free first meeting