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V0891-20 16 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The exemption for reinvestment in a new dwelling may be applied within a period of two years following the sale

The taxpayer inquires about the period for reinvesting the proceeds from the sale of their primary residence and how a change of residence affects this. The DGT clarifies that the reinvestment must occur within two years and that, upon ceasing to be a primary residence, taxation for the imputation of real estate income must be applied.

The question raised

The period available for the disposal of the new dwelling for the purposes of applying the reinvestment exemption under Article 38 of the LIRPF.

The DGT's ruling

For the reinvestment exemption, the amount obtained must be reinvested in the acquisition or renovation of a new primary residence within a period not exceeding two years from the transfer. The transferred property must have been a primary residence at that time or during the two preceding years. Once the property ceases to be a primary residence, the taxpayer must be taxed for the imputation of real estate income based on its cadastral value.

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