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V0741-23 28 March 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied without full ownership of the property for three years

A taxpayer inquired whether a property partially inherited from her parents could be considered a primary residence to qualify for the reinvestment exemption. The Directorate General of Taxes (DGT) ruled that it does not, as the requirement of holding full ownership throughout the minimum three-year residency period was not met.

The question raised

Whether the dwelling in question is considered a habitual residence for the purposes of applying the reinvestment exemption to the portion belonging to the applicant.

The DGT's ruling

For the transfer of the dwelling to be exempt due to reinvestment, the building must have constituted the habitual residence for a continuous period of at least three years. Furthermore, the taxpayer must have held full ownership of the dwelling during said period. In this case, as full ownership was not held until 2021, the required period of residence is not met.

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