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V1322-23 18 May 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if sale proceeds are used to acquire part of a new property

The taxpayer asks whether the reinvestment exemption can be applied when selling their primary residence to purchase 50% of a new property. The Directorate General for Taxes (DGT) rules that this is possible, provided the amount obtained is reinvested in the acquisition of the new primary residence within the legal timeframes.

The question raised

Whether the exemption for reinvestment is applicable to the capital gain obtained.

The DGT's ruling

In order for the capital gain to be exempt, it is necessary to reinvest the total amount obtained in the acquisition or rehabilitation of a new primary residence within a period of two years (prior to or following the disposal). In the event that only a part of the dwelling is acquired, the exemption shall be applied proportionally to the amount effectively invested. Both dwellings must comply with the requirements of a primary residence according to the Personal Income Tax Regulations.

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