Skip to content
Back to index
V0703-26 30 March 2026 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption possible for home construction if timelines met

The consultant asks whether reinvestment exemption can be applied when building a new home (self-construction) before selling the current one. The DGT responds that it is possible as long as the reinvestment and construction completion timelines set by case law are met.

The question raised

Requirements and timeframe for applying the exemption for reinvestment in a primary residence under article 38.1 of the LIRPF in the case of self-promotion prior to sale.

The DGT's ruling

To apply the exemption for reinvestment in the construction of a dwelling, two conditions must be met: 1) the entire amount obtained from the sale of the dwelling prior to the construction of the new one must be applied within a period of two years (prior to or following the sale); and 2) the construction must be completed within a period not exceeding four years from the start of the investment, except for legal extensions. The four year period is calculated from the first payment made for the construction that is considered a reinvested amount.

Book your free first meeting