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V0791-22 11 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption applicable if the total amount is reinvested to acquire the remaining share of a primary residence

The taxpayer asks whether the primary residence reinvestment exemption can be applied when selling a home to purchase the remaining ownership share of another property. The DGT states that the exemption requires both the transferred and the acquired properties to be primary residences and that the total amount obtained must be reinvested.

The question raised

Possibility of applying the exemption for reinvestment in a primary residence under Personal Income Tax.

The DGT's ruling

In order for the gain from the transfer of the primary residence to be exempt, it is necessary to reinvest the total amount obtained in the acquisition or renovation of a new primary residence. The reinvestment must be carried out within a period of two years prior to or following the date of disposal. Furthermore, the status of primary residence must apply to both the residence being transferred and the one being acquired.

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