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V1950-25 15 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption possible for selling a public protection property

The consultant asks whether the reinvestment exemption from capital gains can be applied when selling a public protection property (VPO) after its protection period expires. The DGT confirms this is possible if the property was the taxpayer's habitual residence at the time of sale or at any point in the two years prior.

The question raised

Whether one may qualify for the exemption regarding the reinvestment of capital gains that may be obtained from the sale of a social housing unit (VPO) once the protection period has expired.

The DGT's ruling

To qualify for the reinvestment exemption, the transferred property must be the taxpayer's habitual residence, understood as the residence for a continuous period of at least three years (or due to exceptional circumstances). This condition of habitual residence must be met by both the transferred property and the property being acquired. The exemption is applicable if the transferred property held such status at the time of sale or on any day during the two years prior to the date of transfer.

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