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V1166-20 30 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Reinvestment exemption for main residence requires proof that relocation was necessary and not voluntary

A taxpayer has enquired whether their property can be considered a main residence to qualify for the reinvestment exemption, having resided there for less than three years due to job loss and a move to Brazil to care for a sick relative. The DGT indicates that the change of residence must be an indispensable necessity rather than a matter of convenience, leaving the assessment of the facts to the Tax Administration.

The question raised

Possibility of considering that the transferred dwelling attained the status of habitual for the purposes of applying the exemption for reinvestment in a habitual dwelling, given the circumstances present, even if one has not resided in it for three years.

The DGT's ruling

For a dwelling to be considered habitual without meeting the three-year period, circumstances must arise that necessarily require a change of residence. The change must not be a voluntary act or for mere convenience, but an obligation from which it is impossible to withdraw. It is the responsibility of the management and inspection bodies to assess whether the factual circumstances justify such necessity through the evidence provided.

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