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V1644-25 15 September 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption not applicable if sold property was not habitual residence

The consultant asks whether the reinvestment exemption can be applied when selling a property that was previously their habitual residence but is now rented. The DGT responds that it is not possible because the property does not meet the requirement of being a habitual residence at the time of sale or in the two years prior.

The question raised

Whether the reinvestment exemption applies in the event that the aforementioned property is sold and the amount obtained is reinvested in a new habitual residence

The DGT's ruling

To apply the reinvestment exemption, the transferred property must be the taxpayer's habitual residence at the time of sale or have been so during the two preceding years. The exemption is not applicable if the property does not constitute the habitual residence at the time of transfer nor during said two-year period. In the case of a job transfer, a property may only qualify as habitual if the three-year period of continuous residence has not been completed.

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