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V1126-17 10 May 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

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

A taxpayer inquired whether a property acquired in 2006 and inhabited for six years could be considered a main residence for the purpose of applying the reinvestment exemption, after moving into a rental property. The DGT ruled that this is not possible because the property was neither the main residence at the time of sale nor during the preceding two years.

The question raised

Whether the property acquired in 2006 can be classified as a habitual residence under Article 41 bis of the RIRPF, for the purposes of applying the reinvestment exemption

The DGT's ruling

For the reinvestment exemption, the transferred property must be the taxpayer's habitual residence at the time of the transfer or have been so on any day during the two preceding years. Although the property met the requirement of three years of continuous residence, the inquirer has not resided in it since 2012. As it was not the habitual residence at the time of sale nor in the two preceding years, the exemption cannot be applied.

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