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V0796-22 11 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Only the proportional share of capital gains from selling a hotel-use property may be exempt if reinvested in a main residence

A taxpayer inquired whether the main residence exemption could apply to the sale of a property with a hotel licence in which they reside. The DGT ruled that only the portion of the building configured and used as a main residence is eligible for the reinvestment exemption.

The question raised

Whether the exemption for capital gains derived from the sale of one's habitual residence may be applied in their Personal Income Tax return.

The DGT's ruling

In a property with commercial or hotel use, only the part of the building that constitutes the taxpayer's habitual residence may qualify for the reinvestment exemption. To this end, continuous, effective, and permanent residence in said part must be proven for at least three years. The exemption shall be applied proportionally to the surface area of the dwelling relative to the total surface area of the building and to the percentage of ownership. The portion of the capital gain that does not correspond to the habitual residence shall be subject to tax.

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