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V1255-26 25 May 2026 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption not applicable if property purchased outside two-year period

The consultant asks whether the reinvestment exemption can be applied after the dissolution of a condominium, claiming the new home was purchased in 1999 following a divorce. The DGT responds that although case law allows considering the property as habitual if the other spouse remains in it, the exemption does not apply because the reinvestment occurred outside the legal two-year period.

The question raised

Question posed: Whether the capital gain from the sale of the property that was the taxpayer's primary residence, which they had to vacate due to their divorce, can be considered exempt, given that it is understood that the funds were reinvested in the acquisition of a dwelling in 1999.

The DGT's ruling

The dissolution of a co-ownership that generates a capital gain must be taxed if the allocation of assets does not correspond to the ownership share. Regarding the reinvestment exemption, the jurisprudence of the Supreme Court allows the dwelling to be considered a primary residence if the spouse who remained in it occupied it during the two years prior to the transfer. However, the exemption is not applicable if the acquisition of the new dwelling was carried out outside the two-year period required by the regulations.

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