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V1937-17 19 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The reinvestment exemption cannot be applied if the sold property was not the primary residence in the two years prior to the sale

A taxpayer inquired whether they could apply the reinvestment exemption after selling the property used by their former spouse and purchasing another. The DGT responds that this is not possible because the sold property ceased to be the taxpayer's primary residence in 1991.

The question raised

Whether the reinvestment exemption is applicable to the capital gain arising from the transfer of their primary residence.

The DGT's ruling

For the reinvestment exemption, the transferred property must be the taxpayer's primary residence at the time of sale or have been so on any day during the two preceding years. In this case, as the right of use and enjoyment was awarded to the former spouse in 1991, the property ceased to be the primary residence of the inquirer, and therefore does not meet the temporal requirement necessary for the exemption.

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