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V1246-26 25 May 2026 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption requires relocation to be a necessity, not a choice

A taxpayer asks whether they can apply the reinvestment exemption when selling their primary home before three years of continuous residence due to family and health issues. The DGT states that to exempt the three-year residence period, the circumstances must necessitate the move.

The question raised

Question posed: Whether, in the described case, the dwelling intended to be transferred, in which the taxpayer has resided continuously for a period of less than three years, may be considered habitual for the purposes of the reinvestment exemption under Article 38 of the Personal Income Tax Law (LIRPF).

The DGT's ruling

For a dwelling to be considered habitual without having been resided in for three years, circumstances must concur that necessarily require a change of residence. The term 'necessarily' implies that the change cannot be an option of convenience or the taxpayer's will. If circumstances analogous to those of the regulation that compel the change are proven, the exemption could apply. It is the responsibility of the Administration to assess the evidence provided to determine whether the change was necessary.

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