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V1712-24 11 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · vivienda habitual

Reinvestment exemption for primary residence requires necessary, non-voluntary change of domicile

A taxpayer inquired whether the primary residence reinvestment exemption could apply when selling a home before three years of residence due to health issues caused by construction defects. The DGT stated that to waive the three-year period, circumstances must necessitate the change of domicile, which must be proven to the Administration.

The question raised

In the event of transferring it before three years of continuous residence in the same, the possibility of applying the exemption for reinvestment in the primary residence.

The DGT's ruling

For a dwelling to be considered a primary residence without having completed the three-year period, circumstances must concur that necessarily require the change of domicile. The change must not be a voluntary option or for the convenience of the taxpayer, but rather an indispensable obligation. In cases of health problems due to defects in the dwelling, the necessity of the relocation must be justified and proven before the tax management bodies. If the necessity of the change is demonstrated, the exemption could be applied provided that the other legal requirements are met.

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