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V1551-19 25 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Full ownership required for three years to qualify for main residence reinvestment exemption

A taxpayer inquired whether they could apply for the main residence reinvestment exemption after receiving a house as a gift, having lived in it for ten years without being the owner. The Directorate General for Taxes (DGT) ruled that for a property to be considered a main residence, it must have been the taxpayer's effective residence for at least three continuous years since its acquisition.

The question raised

Possibility of applying the reinvestment exemption on the habitual dwelling for the capital gain obtained without having resided in it for 3 years since its acquisition.

The DGT's ruling

For a dwelling to be considered habitual and allow for the reinvestment exemption, it must have constituted the taxpayer's residence effectively for a minimum period of three continuous years from its acquisition. The period of residence prior to the acquisition of ownership cannot be taken into account. Consequently, the taxpayer must hold full ownership and reside in the dwelling during that three-year period to meet the condition of a habitual dwelling.

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