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V1661-17 27 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the transferred property ceased to be a primary residence more than two years ago

A taxpayer inquired whether they could apply for the reinvestment exemption after selling a property that served as their home until their divorce, having already acquired a new residence more than two years prior. The Directorate General of Taxes (DGT) ruled that this is not possible as the required time limits have not been met.

The question raised

Possibility of applying the exemption for reinvestment in a primary residence even though more than two years have elapsed since it ceased to be the primary residence, but, in turn, less than two years since the spouse, who held it by judicial sentence, decided to put it up for sale; and also, for the same reason, more than two years have elapsed since the acquisition of the new primary residence.

The DGT's ruling

To apply the exemption, the transferred property must have been the primary residence up to any day within the two years prior to the transfer. Likewise, the new property must have been acquired within a maximum period of two years prior to the transfer of the previous one. In this case, neither of the two temporal requirements is met.

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