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V1421-18 29 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption denied if new home is delivered more than two years after sale

A taxpayer sold their primary residence and signed a contract with a cooperative for a home currently under construction. The Tax Agency ruled that, to qualify for the exemption, both the legal acquisition and the physical delivery of the new home must take place within two years of the sale.

The question raised

Whether the reinvestment exemption is applicable.

The DGT's ruling

For the reinvestment exemption, the new dwelling must be legally acquired within the period of two years preceding or following the transfer of the previous one. In the case of dwellings under construction, the acquisition occurs when, following the signing of the contract, the tradition or delivery of the property is carried out. If the delivery of the dwelling occurs after the two-year period from the transfer of the habitual residence, the exemption is not applicable.

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