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V1578-24 1 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

For reinvestment exemptions, inherited property must be the main residence for three years from the date of acquisition

A taxpayer inquired whether they could apply for a reinvestment exemption when selling an inherited property in which they have resided since 2020. The Directorate General of Taxes (DGT) ruled that the three-year requirement for habitual residence begins from the date of acquisition via inheritance, rather than from when the taxpayer actually moved into the property.

The question raised

Possibility of applying the reinvestment exemption.

The DGT's ruling

For a dwelling to be considered a primary residence, it must be the effective residence for at least three continuous years from its acquisition by the taxpayer. In the case of inheritances, acquisition is understood to occur at the time of the decedent's death. Therefore, the period of residence prior to the acquisition of ownership cannot be counted to satisfy the three-year requirement.

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