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V1879-25 14 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption not applicable if property ceased to be habitual residence

A taxpayer asks whether the reinvestment exemption applies to a property that ceased being their habitual residence in 2017 due to a job transfer. The DGT responds that it does not apply because the property did not meet the requirement of being a habitual residence at the time of sale or in the two years prior.

The question raised

To determine whether the exemption for reinvestment applies in the event of obtaining a capital gain from the sale of a property that was one's habitual residence.

The DGT's ruling

To apply the exemption, the transferred property must be the habitual residence at the time of sale or must have been so in the two preceding years. Habitual residence requires continuous residence of at least three years, except in exceptional circumstances requiring a change of domicile. In this case, having left the property in 2017, the requirement of habitual residence for the transfer is not met.

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