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V1975-21 23 June 2021 · 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 habitual residence in the two years prior to the sale

A taxpayer asks whether they can apply the reinvestment exemption after selling a property that was their home until 2016, but which was rented out when they returned to Spain. The DGT responds that it is not applicable because the property was neither the habitual residence at the time of sale nor in the two preceding years.

The question raised

Whether the reinvestment exemption for the habitual residence is applicable.

The DGT's ruling

To apply the exemption, the transferred property must be the habitual residence at the time of sale or have been so on any day during the two years prior to the transfer. In this case, having ceased to reside in it in 2016 and selling it in 2020, the requirement of habitual residence required by the Personal Income Tax Regulations is not met. Therefore, the capital gain obtained cannot benefit from the reinvestment exemption.

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