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V1668-24 10 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Purchase price, acquisition costs, and renovation works may be considered as reinvested amounts

The query asks whether both the purchase price and renovation costs can be included for the exemption on reinvestment in a primary residence. The DGT rules that the reinvested amount includes the purchase price and acquisition costs, and that renovation works may be included if they qualify as rehabilitation under legal requirements.

The question raised

Whether, for the purposes of applying the reinvestment exemption, both the amounts paid for the purchase of the main residence and the amounts paid for works (whether paid prior to or resulting after the horizontal division) may be considered reinvested amounts.

The DGT's ruling

The reinvested amount comprises the purchase price and the inherent acquisition costs. Works may be considered rehabilitation if their primary purpose is the reconstruction of structural elements (structures, facades, or roofs) and their cost exceeds 25% of the building value. If the works do not meet these rehabilitation requirements, only the amounts allocated to the acquisition of the dwelling shall be understood as reinvested.

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