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V1748-24 16 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · arrendamiento con opción de compra

Reinvestment exemption unavailable if property is transferred more than two years after ceasing to be a primary residence

A taxpayer intends to lease their property under a rent-to-buy agreement for three years before selling it to reinvest in another home. The DGT has ruled that a purchase option contract triggers two separate changes in assets. Consequently, the reinvestment exemption would not apply because the sale would take place more than two years after the property ceased to be the taxpayer's primary residence.

The question raised

Tax treatment of said operation and possible application of the reinvestment exemption for the habitual residence to the transfer of the property.

The DGT's ruling

The granting of a call option generates a capital gain at the time of its formalization. Subsequently, the exercise of the option and the sale and purchase constitute a new change in assets. To apply the reinvestment exemption, the transferred property must have been the habitual residence at the time of the transfer or on any day during the two preceding years. If the transfer is carried out after three years of leasing since the residence was vacated, the period set forth in article 41 bis.3 of the RIRPF is not met.

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