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V1821-19 15 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption denied if the transferred property was not the main residence for three years

The taxpayer inquired whether the reinvestment exemption could be applied when selling an inherited property to purchase a new main residence. The Directorate General for Taxes (DGT) ruled that this is not possible, as the requirement to have resided in the transferred property for at least three years has not been met.

The question raised

Whether the reinvestment exemption is applicable.

The DGT's ruling

To qualify for the reinvestment exemption, both the transferred property and the acquired property must be primary residences. A primary residence requires that the taxpayer resides in it continuously for at least three years while holding full ownership. Since the applicant has not resided in the inherited property for that minimum period, the exemption cannot be applied.

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