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V1352-22 13 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the property ceased to be a primary residence more than two years ago

The inquirer asks whether they can apply the reinvestment exemption after selling a property that they stopped using due to a divorce decree. The DGT rules that this is not possible because the property was neither a primary residence at the time of sale nor during the preceding two years.

The question raised

Whether the reinvestment exemption is applicable.

The DGT's ruling

To apply the reinvestment exemption, the transferred property must be the taxpayer's habitual residence at the time of sale or have been so on any day during the two preceding years. In this case, as residence in the property ceased due to divorce in 2006, the temporal requirement stipulated by the Personal Income Tax Regulations is not met.

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