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V1634-22 8 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Requirements for reinvestment exemption in habitual home: three-year period and exceptions

A taxpayer asks whether they can claim the reinvestment exemption after selling their primary residence to buy another in a different city for work reasons. The DGT responds that, as there has been no continuous residence for three years, the general requirement is not met, unless they can demonstrate circumstances that necessarily require a change of domicile.

The question raised

Possibility of applying the reinvestment exemption to the gain that may arise from the transfer of the primary residence for the purposes of Personal Income Tax.

The DGT's ruling

For the exemption, the dwelling must be the primary residence, which requires continuous residence for at least three years. This period may be excepted if circumstances arise that necessarily require a change of domicile, implying that the change is not a voluntary option or for convenience. The taxpayer must prove through evidence that the situation compels them to change their residence in order to apply the exemption before the three-year period is completed.

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