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V1376-22 14 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Exemption for home sale or reinvestment cannot be applied if the property is not a primary residence

A taxpayer under the age of 65 inquired whether they could apply the home sale exemptions for those over 65, or the reinvestment exemption for a primary residence, after selling a rental property. The Directorate General for Taxes (DGT) ruled that this is not possible because the property does not meet the requirement of being a primary residence.

The question raised

Request for clarification on whether the exemption for reinvestment of the habitual residence or the exemption for the transfer of assets for taxpayers over 65 years of age may be applied.

The DGT's ruling

To apply the exemption for the transfer of a dwelling (individuals over 65 years of age or dependent persons) or the reinvestment exemption, the transferred property must be the taxpayer's habitual residence at the time of the transfer or have been so on any day during the two preceding years. Since the transferred property is not the applicant's habitual residence, neither of the two exemptions is applicable.

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