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V1298-25 11 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption does not apply if property ceased to be habitual residence after two years

The consultant asks whether their property remains a habitual residence after relocating for work to qualify for the reinvestment exemption. The DGT responds that the property lost its status as a habitual residence and, as more than two years have passed, the exemption cannot be applied.

The question raised

A. Whether their owned dwelling loses its character as habitual when the relocation is due to work necessity, and whether this can be considered as being due to office or employment, in such a way that it enables them to benefit from the exemption for reinvestment in a habitual residence upon acquiring a habitual residence.

The DGT's ruling

The dwelling loses its status as a habitual residence from the moment it ceases to be the taxpayer's residence, regardless of the reason for the relocation. The exception of maintaining habitual status due to office or employment only applies if the use of the dwelling is inherent to the position and the owned dwelling is not used, which is not the case here. If more than two years have passed since it ceased to be habitual, the exemption for reinvestment cannot be applied. Furthermore, a non-habitual dwelling generates an imputation of real estate income.

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