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V1781-24 17 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for primary residence applies if inheritance acquisition is backdated to the date of death

A taxpayer inquired whether the reinvestment exemption could be applied to the renovation of an inherited property, given that the formal adjudication of the inheritance took place outside the legal timeframe. The Directorate General of Taxes (DGT) ruled that, since the acquisition through inheritance has retroactive effect to the date of death, the reinvestment may qualify for the exemption.

The question raised

Whether the reinvestment exemption is applicable under the conditions indicated above.

The DGT's ruling

The acquisition of assets by inheritance occurs upon acceptance thereof, but its effects are retroactive to the moment of the decedent's death. Therefore, even if the formal adjudication is carried out after the reinvestment period, the acquisition is deemed to have occurred on the date of death. This allows the renovation of the inherited property to comply with the time requirements for the exemption due to reinvestment in the primary residence.

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