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V1824-20 8 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The two-year deadline for main residence reinvestment relief cannot be extended

A taxpayer inquired whether the two-year period for reinvesting proceeds from the sale of their main residence could be extended due to delays in the delivery of a new property by a developer. The Directorate-General for Taxes (DGT) ruled that the legal acquisition must take place within the two-year period following the transfer of the previous property.

The question raised

Possible extension of the two-year reinvestment period due to a delay in delivery not attributable to the buyers.

The DGT's ruling

For the reinvestment exemption, the legal acquisition of the new dwelling must occur within the two years following the transfer of the primary residence. In the case of dwellings acquired from developers, the acquisition is deemed to have occurred when, following the signing of the purchase agreement, the delivery or transfer of the sold item takes place. Failure to comply with the two-year period requires the filing of a supplementary tax return for the fiscal year in which the gain was obtained, including late payment interest.

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