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V0749-23 28 March 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption denied if sold property was not primary residence at time of sale or in the preceding two years

A taxpayer inquired whether they could apply for the reinvestment exemption after selling a property in Málaga, where they resided until 2012, to purchase a new one in Cáceres. The Directorate General of Taxes (DGT) ruled that the exemption is not applicable because the sold property was not their primary residence, nor had it been during the two years prior to the transfer.

The question raised

Whether the exemption for reinvestment in a habitual residence is applicable.

The DGT's ruling

For the exemption to apply, the transferred property must be the habitual residence at the time of sale or must have been so during the two preceding years. A job transfer allows a residence of less than three years to be considered a habitual residence, but it does not grant that status to a property in which one has not resided for years. Since the property in Málaga was neither the applicant's habitual residence at the time of sale nor during the preceding two-year period, the exemption does not apply.

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