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V1296-25 11 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applies if property is sold within two years of ceasing habitual residence

The consultant asks whether a property ceasing to be a habitual residence for rental purposes remains a habitual residence for reinvestment exemption. The DGT responds that the property retains this status for two years after the cessation of habitual residence.

The question raised

Whether, in the event of transferring the aforementioned property, it is considered a primary residence for the purposes of the exemption under Article 38 of the Personal Income Tax Law (LIRPF).

The DGT's ruling

For the reinvestment exemption, the transferred property must be the taxpayer's primary residence at the time of sale or have been so on any day during the two preceding years. If the taxpayer ceases to reside in it, a period of two years is available for its sale without losing the right to the exemption. If the sale occurs after that period, the taxpayer must reside in the property again for three years for it to regain its status as a primary residence.

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