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V1683-22 14 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Possibility of rectifying self-assessment to apply the exemption for reinvestment in residential construction

A taxpayer inquired whether they could rectify their tax return after having paid capital gains tax due to not meeting the legal acquisition period for a property under construction. The DGT ruled that, following a change in Supreme Court doctrine that benefits the taxpayer, the individual may request a rectification if they believe the self-assessment prejudiced their legitimate interests.

The question raised

Question posed: Whether, in light of the doctrine of the Supreme Court (among others, judgment no. 2698/2020 of July 23), there is a right to the reinvestment exemption and, therefore, whether a rectification of the self-assessment may be submitted.

The DGT's ruling

For the exemption due to reinvestment in the construction of a primary residence, a dual condition must be met: the amount must be reinvested within a period of two years and the works must be completed within a period not exceeding four years from the commencement of the investment. The taxpayer may request the rectification of a self-assessment that has prejudiced their legitimate interests, provided that the request is made within the limitation period. The final assessment of whether the requirements for proceeding with said rectification are met rests with the bodies responsible for the application of taxes.

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