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V0719-22 1 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption requires the sold property to be the main residence, regardless of census registration

The inquirer asks whether they must be registered on the municipal census (empadronamiento) at the property being sold to apply for the reinvestment exemption, and what the timeframe is for purchasing a new home. The DGT rules that census registration is not a determining factor and that the new property may be acquired within the two years preceding or following the sale.

The question raised

Whether there is a time limit for selling one's current residence and purchasing a new habitual residence, or whether one must be registered in the residence being sold in order to apply the reinvestment exemption.

The DGT's ruling

For the exemption to apply, the transferred property must be the habitual residence, which requires residing in it for at least three years or the existence of justified circumstances for a change of domicile. Registration in a different domicile does not, in itself, deprive one of the right to the exemption if habitual residence is proven by other means. The new property must be acquired within a period not exceeding two years from the transfer of the previous one, and may also be acquired in the two years prior.

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