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V1314-24 5 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Reinvestment exemption for main residence within three years requires proof of necessity for relocation

A self-employed individual inquired whether her home qualifies as a main residence to apply the reinvestment exemption, given that her new job requires a 52 km commute. The DGT ruled that, as this does not constitute a formal job transfer, it must be demonstrated that the change of residence is an indispensable necessity rather than a matter of convenience.

The question raised

Whether, in the event of proceeding with the sale of the aforementioned dwelling, it is considered habitual for the purposes of applying the exemption for reinvestment in a habitual dwelling.

The DGT's ruling

For a dwelling to be considered habitual without having resided there for three years, circumstances must concur that necessarily require a change of domicile. The change must be mandatory and not an option based on the convenience or comfort of the taxpayer. In the case of self-employed individuals, the concept of job transfer does not apply, therefore the necessity to change residence must be assessed on a case-by-case basis by the Administration.

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