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V1660-25 16 September 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption not applicable if property sold was not habitual residence in two years prior

Consultants ask whether reinvestment exemption applies after selling a property whose purchase was delayed due to judicial proceedings. The DGT responds that it is not possible because the property sold was not a habitual residence at the time of sale or in the two years prior.

The question raised

Whether the exemption for reinvestment in a primary residence may be applied to the sale of property B, considering that the transfer was delayed due to judicial litigation.

The DGT's ruling

To apply the exemption for reinvestment, the transferred property must be the taxpayer's primary residence at the time of sale or have been so on any day during the two preceding years. A primary residence requires continuous residence for at least three years, except in exceptional circumstances requiring a change of domicile. In this case, as residence in the property ceased in May 2020 and it was sold in December 2024, the requirement of habitual residence is not met.

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