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V1449-17 7 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption applicable to foreign home purchase

A Spanish tax resident asks whether the reinvestment exemption can apply after selling her home in Spain and moving to the United States. The DGT confirms the exemption is available for a foreign property, provided reinvestment and habitual residence conditions are met.

The question raised

Whether the exemption for reinvestment in a primary residence is applicable to the capital gain obtained by the taxpayer (a tax resident in Spain in 2016) from said sale.

The DGT's ruling

In order for the gain from the transfer of the primary residence to be exempt, it is necessary to reinvest the total amount obtained in the acquisition or renovation of a new primary residence. The exemption is applicable to a property located abroad, such as the United States, as the Regulation does not require the new residence to be located in Spanish territory. The reinvestment must be carried out within a period of two years prior to or following the date of disposal, and the residence must meet the requirements of habitual residence.

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