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V1253-21 6 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The reinvestment exemption cannot be applied if the property is sold more than two years after ceasing to be a primary residence

The taxpayer asks whether the reinvestment exemption for a primary residence can be applied when selling a house that was their residence but which they vacated six years ago due to divorce. The DGT responds that it is not possible because the property must have been the primary residence at the time of sale or during either of the two preceding years.

The question raised

Possibility of applying the reinvestment exemption for a primary residence.

The DGT's ruling

To apply the exemption, the transferred property must be the primary residence at the time of sale or must have been so on any day during the two preceding years. If residency ceases due to reasons such as divorce, a two-year period is available for its sale without losing the right to the exemption. As six years have elapsed since the taxpayer vacated the property, the requirement of habitual residence required by the Regulations is not met.

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