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V1297-25 11 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption not applicable if property no longer habitual

The consultant asks whether the reinvestment exemption applies to selling a property where they resided between 2004 and 2012 and now rents it. The DGT responds that it is not possible because the property no longer has the status of habitual residence.

The question raised

Whether the exemption for reinvestment applies in the event that this property is sold and the proceeds are reinvested in a new primary residence.

The DGT's ruling

To apply the exemption, the transferred property must be the primary residence at the time of sale or have been so during the two preceding years. The exemption for job relocation only allows a property to qualify as a primary residence if three years of continuous residence have not been completed. Since the taxpayer resided in the property for more than three years and ceased living in it in 2012, the property is neither a primary residence at the time of transfer nor during the two preceding years.

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