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V1016-22 5 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption cannot be applied if the sold property was not the main residence in the two years prior to transfer

The taxpayer asks whether they can apply the reinvestment exemption when selling a property that ceased to be their main residence in 2019 to purchase another. The Directorate General for Taxes (DGT) rules that this is not possible because the property was neither the main residence at the time of sale nor during the two preceding years.

The question raised

Whether the exemption for reinvestment is applicable to the capital gain that may be obtained from the transfer of the residence.

The DGT's ruling

To apply the exemption for reinvestment, the transferred property must be the primary residence at the time of sale or have been so on any day during the two years prior to the transfer. In this case, as it was abandoned in 2019 and the sale is proposed in 2022, the requirement of habitual residence required by Article 41 bis.3 of the RIRPF is not met. Therefore, the capital gain shall not be exempt.

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