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V1944-18 2 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption may apply to housing under construction if legal acquisition occurs within the statutory period

The inquirer asks about the timeframe and commencement period for the reinvestment exemption regarding a future property under development. The DGT rules that the legal acquisition must take place within the two years preceding or following the disposal of the primary residence.

The question raised

For the purposes of applying the exemption for reinvestment in the primary residence, the period for reinvestment in the case of the development of a future dwelling and from which moment the calculation of said period begins.

The DGT's ruling

For the exemption due to reinvestment in the construction of a future dwelling, the legal acquisition must take place within the period of two years prior to or following the transfer of the preceding dwelling. The timing of when construction commenced is irrelevant. In the case of payments made to the developer, the acquisition is understood to have occurred when, following the signing of the purchase and sale agreement, the tradition or delivery of the thing takes place (delivery of keys, taking possession, or public deed).

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