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V1022-22 6 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the new property was purchased outside the two-year period

A taxpayer inquired whether they could apply for the reinvestment exemption after selling their former home and purchasing a new one following a divorce. The Directorate General of Taxes (DGT) ruled that the exemption is not applicable because the purchase of the new property did not take place within the two years preceding the sale of the old one.

The question raised

Whether the reinvestment exemption is applicable.

The DGT's ruling

For the reinvestment exemption, the new dwelling must be acquired within a period of two years prior to or following the transfer of the primary residence. In this case, the acquisition of the new dwelling did not occur within the two years prior to the transfer of the previous one. Furthermore, the transferred dwelling did not meet the requirement of being a primary residence at the time of sale nor in the two years preceding it.

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