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V1120-19 21 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · nuda propiedad

Reinvestment exemption cannot be applied if only bare ownership of the property is held

A taxpayer inquired whether they could apply the reinvestment exemption for their primary residence after selling a portion of the bare ownership of a property they had inhabited. The Directorate General for Taxes (DGT) ruled that this is not possible, as this tax benefit requires full ownership of the property.

The question raised

Whether the inquirer could apply the exemption for reinvestment in a habitual residence.

The DGT's ruling

Tax benefits linked to the taxpayer's habitual residence are tied to the ownership of full title, even if held jointly. As the inquirer holds only a percentage of the bare ownership, she cannot apply the exemption for reinvestment in a habitual residence.

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