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V0699-24 16 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the sold property was not a primary residence in the previous two years

A taxpayer inquired whether their property qualifies as a primary residence to apply the reinvestment exemption, having resided there until 2020 and returning in 2024. The DGT ruled that it does not qualify as a primary residence because the required period of residence was not met, nor were there exceptional circumstances to maintain that status.

The question raised

Whether, in the event of proceeding with the sale of their owned property in the year 2024, said property is considered habitual for the purposes of the exemption for reinvestment in a habitual residence.

The DGT's ruling

For the reinvestment exemption, the transferred property must be the habitual residence at the time of sale or have been so during the two preceding years. Habitual residence requires continuous residence for at least three years, unless circumstances arise that necessitate a change of domicile. In this case, having ceased to reside in the property in July 2020, the requirement of habitual residence is not met for a sale in 2024.

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