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V1749-19 10 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption inapplicable if new home delivery occurs more than two years after sale

A taxpayer sold their primary residence in May 2018 and purchased a property under construction, with delivery expected in May 2021. The Tax Agency has ruled that because the legal acquisition did not take place within the two-year period, the exemption does not apply.

The question raised

Whether the exemption for reinvestment can be applied to the entirety of the capital gain obtained from the sale of the residence and the period for reinvestment.

The DGT's ruling

For the exemption, the reinvestment must be carried out within a period not exceeding two years from the transfer of the primary residence. In the case of dwellings under construction, legal acquisition occurs upon delivery of the property, whether through taking possession, delivery of keys, or public deed. If the delivery of the new dwelling occurs outside the two-year period from the sale of the previous one, the capital gain cannot be exempted.

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