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V0974-19 7 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for main residence requires delivery of new property within two years

A query was raised regarding whether the reinvestment exemption can apply to a property under construction if delivery does not occur within two years of selling the previous residence. The DGT ruled that the legal acquisition must take place within said period to maintain the exemption.

The question raised

Possible application of the exemption for reinvestment in a primary residence even if the delivery of the same has not occurred within the two-year period following the transfer of the previous primary residence.

The DGT's ruling

To apply the exemption, the reinvestment must be carried out within a period not exceeding two years from the transfer of the primary residence. In the case of dwellings under construction, legal acquisition is understood to have occurred when the tradition or delivery of the property takes place, such as the handing over of keys or the execution of a public deed. If the delivery of the new dwelling does not occur within the two years following the sale of the previous one, the right to the exemption is lost and the situation must be regularized.

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