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V1209-17 18 May 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if property was primary residence up to two years before sale

The inquirer asks whether the reinvestment exemption for a primary residence can be applied if more than two years have passed since the property ceased to be their home, but less than two years since their former spouse decided to sell it. The DGT rules that the exemption is possible if the property served as the primary residence up to any day within the two years preceding the transfer.

The question raised

Possibility of applying the exemption for reinvestment in a primary residence even though more than two years have elapsed since it ceased to be the primary residence, but, in turn, less than two years since the spouse, who held rights to it by judicial sentence, decided to put it up for sale.

The DGT's ruling

In order for the capital gain from the transfer of a property that was a primary residence to be exempt through reinvestment, the building must have served as a primary residence up to any day within the two years preceding the date of transfer. This two-year period applies regardless of the cause determining the cessation of effective residence, such as divorce or separation.

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