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V1158-19 28 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment relief may apply if the new property was purchased before the sale of the old one

A taxpayer inquired whether they could claim reinvestment relief after selling their primary residence, having acquired a new home and a garage space one year prior. The DGT clarified that the relief is applicable if the amount is reinvested within a two-year period (either before or after the sale), but this does not include the garage space purchased subsequently.

The question raised

Whether the exemption for reinvestment is applicable to the capital gain obtained from the sale of the primary residence.

The DGT's ruling

The exemption for reinvestment allows the amount obtained from the sale of the primary residence to be allocated to the acquisition of a new residence within a period of two years, whether prior or subsequent to the transfer. Due to the fungible nature of money, it is not necessary for the funds to be the same, but rather that the amount invested is equivalent to the amount obtained. However, the acquisition of a garage space one year after the residence is not considered an acquisition of a primary residence for these purposes. The exemption shall cover both the replacement of previously invested savings and the amortization of loans for the new residence.

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