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V1216-22 31 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Capital gains from the sale of a dwelling must be taxed if the amount is not reinvested in a new primary residence

A taxpayer declared the gain from the sale of their primary residence as exempt, intending to reinvest the funds in a new construction, but the work was halted. The Tax Agency responds that, since the reinvestment did not occur, the exemption is not applicable and the taxpayer must regularize their situation.

The question raised

Calculation of the capital gain and how the taxpayer must regularize their tax situation.

The DGT's ruling

Failure to comply with the conditions of the exemption, such as not performing the reinvestment within the two-year period, entails the taxation of the capital gain. The taxpayer must submit a supplementary tax return for the fiscal year in which the gain was obtained (2020), including the non-exempt gain and late payment interest. Interest is applied from the end of the filing period for said fiscal year until the date of regularization.

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