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V1232-20 4 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Two-year deadline for reinvestment in primary residence suspended due to COVID-19 state of alarm

The taxpayer asks whether the two-year period for reinvesting proceeds from the sale of their primary residence is extended due to the state of alarm. The DGT rules that the calculation of this period was suspended from 14 March 2020 to 30 May 2020.

The question raised

Whether the 2-year period for the acquisition of the new dwelling will be extended in its case, having been affected by the consequences of the state of alert.

The DGT's ruling

For the reinvestment exemption, the legal acquisition of the new dwelling must occur within the period of two years prior to or following the transfer. Time periods set by years are computed from date to date without general extension, except for the suspension of deadlines established by Royal Decree-laws due to the COVID-19 crisis. Consequently, the computation of the two-year period is suspended from March 14, 2020, until May 30, 2020. If the legal acquisition or the completion of works is not met within said period, the capital gain may not be exonerated.

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