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V1352-24 7 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if the sold property was the main residence in the two years prior to sale

A taxpayer inquired whether they could apply for the reinvestment exemption after selling a property that had been rented out following their departure from it. The Directorate General of Taxes (DGT) ruled that a property retains its status as a main residence if it was inhabited during either of the two years preceding the transfer.

The question raised

Whether, if applicable in their case, the exemption for reinvestment in a primary residence applies.

The DGT's ruling

For the exemption to apply, the transferred property must be the primary residence, which is understood as such if it constituted the residence for at least three years or if it has been considered as such on any day during the two years prior to the date of transfer. The reinvestment of the amount obtained must be carried out within a period not exceeding two years from the date of transfer. The new property acquired must also meet the requirements of a primary residence.

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