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V1585-19 27 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Death of taxpayer does not constitute breach of main residence reinvestment exemption

A query was raised regarding whether the death of a taxpayer before reinvesting the proceeds from the sale of their main residence constitutes a breach of the tax exemption. The Directorate General for Taxes (DGT) ruled that, due to the nature of death, it cannot be considered a failure to comply with the reinvestment obligation.

The question raised

Consolidation of the exemption.

The DGT's ruling

The death of the taxpayer cannot be considered a failure to comply with the requirement of reinvestment in the primary residence. Given the extinction of the legal personality of natural persons, it cannot be required to comply with future actions or requirements that death entails. Therefore, the exemption for reinvestment remains applicable to the capital gain obtained.

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