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V1240-21 5 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The reinvestment exemption may be applied if the new primary residence was purchased up to two years before selling the previous one

The taxpayer sold a second home to purchase a new one and subsequently sold their primary residence to move into the new one. The Tax Agency responds that the reinvestment exemption is applicable even if the new home was acquired in the two years prior to the sale of the primary residence.

The question raised

Question posed: Whether the reinvestment exemption on a primary residence is applicable.

The DGT's ruling

For the reinvestment exemption on a primary residence, the new home must be acquired within a period of two years before or after the transfer of the previous one. It is not necessary that the funds obtained from the sale of the primary residence are the same as those used for the prior purchase, as money is a fungible asset. The exemption shall be total if the total amount obtained is reinvested, or partial if the amount is lower.

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