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V1056-18 25 April 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if new home was purchased up to two years before selling the old one

The inquirer asks whether the exemption for reinvestment in a primary residence can be applied if the new home was purchased using savings prior to the sale of the previous one. The DGT rules that it is possible, provided that the requirements for a primary residence are met and the proceeds from the sale are reinvested.

The question raised

Whether resolution 02463/2013 of the Central Economic and Administrative Tribunal of September 11, 2014, would be applicable to consider the capital gain in the transfer of their residence as exempt.

The DGT's ruling

For the exemption, it is sufficient that the taxpayer invests, within a period of two years prior to or following the sale, an amount equivalent to the amount obtained from the transfer. It is not necessary that the funds obtained from the sale are the same as those used for the previous purchase, due to the fungible nature of money. The transfer of the former residence must contribute to satisfying the amount of the new one, allowing for the replacement of previously invested savings.

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