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V1633-22 8 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · iivtnu

Transfer of rural property is not subject to IIVTNU and does not allow reinvestment exemption unless it is a primary residence

A person selling their share of a rural property containing a dwelling has enquired whether the transaction is subject to municipal capital gains tax (IIVTNU) and whether the reinvestment exemption for another primary residence can be applied. The DGT has determined that the IIVTNU does not apply as the land is rural, and the exemption is not applicable because the property being transferred is not the taxpayer's primary residence.

The question raised

Taxation of the operation under the Tax on the Increase in Value of Urban Land.

The DGT's ruling

The transfer of land classified as rural for IBI purposes is not subject to the IIVTNU. Regarding IRPF, the exemption for reinvestment only applies if the transferred property is the taxpayer's habitual residence. Since the property on the estate is not the habitual residence according to legal requirements, said exemption cannot be applied.

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