Skip to content
Back to index
V1829-17 11 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Reinvestment exemption possible for habitual home if residency conditions met

A consultant working for an NGO who travels frequently asks whether the reinvestment exemption applies after selling their home. The DGT responds that the exemption is available as long as fiscal residency in Spain is maintained and both properties have the character of a habitual home.

The question raised

Whether the exemption for reinvestment applies to the capital gain arising from the transfer of their primary residence.

The DGT's ruling

To apply the exemption, the person must be a tax resident in Spain, taxed on their worldwide income. Both the transferred and the acquired property must be considered a habitual residence, which requires continuous residence for three years or justified circumstances requiring a change of domicile. The reinvestment must be carried out within a period not exceeding two years from the transfer.

Book your free first meeting