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V1681-19 8 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the new property is delivered more than two years after the sale

A taxpayer sold their primary residence in 2017 and signed the purchase agreement for a new one in 2019, but delivery is scheduled for 2021. The Tax Agency has ruled that the exemption requires the legal acquisition of the new property to take place within the two-year period.

The question raised

Whether the reinvestment exemption can be applied to the entirety of the capital gain obtained from the sale of one's primary residence and the timeframe for reinvestment.

The DGT's ruling

For the reinvestment exemption, the legal acquisition of the new dwelling must occur within the period of two years prior to or following the transfer of the primary residence. In the case of real estate, the acquisition is understood to have occurred when the tradition or delivery of the sold item is carried out, such as the delivery of keys or the execution of a public deed. If the delivery is carried out outside of that two-year period, the capital gain cannot be exempted.

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