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V1619-22 4 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if the sold property was a primary residence up to two years before the sale

A taxpayer inquired whether they could apply the primary residence reinvestment exemption when selling their home in Barcelona to purchase one in Madrid following a job relocation. The DGT ruled that this is possible, provided that the reinvestment requirements are met and both properties qualify as primary residences.

The question raised

Request to determine whether the exemption for reinvestment in a primary residence may be applied to the potential capital gain arising from the sale of the residence in Barcelona.

The DGT's ruling

To apply the exemption, the transferred property must have been the primary residence at the time of sale or up to two years prior to the sale. The primary residence is defined as the property where one resides for at least three years, except in circumstances such as job relocation that allow for the exemption to be claimed before said period. It is necessary to reinvest the amount obtained in the acquisition or rehabilitation of a new primary residence within a period of two years prior to or following the disposal.

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