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V2038-22 21 September 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · extinción de condominio

The reinvestment exemption cannot be applied if the dwelling was not the primary residence during the two years prior to the transfer

A taxpayer asks whether they can apply the reinvestment exemption for a primary residence following the dissolution of a co-ownership where they received financial compensation. The DGT responds that this is not possible because the dwelling was not their primary residence at the time of the transfer nor during the two preceding years.

The question raised

Possibility of applying the reinvestment exemption for a primary residence.

The DGT's ruling

The dissolution of a co-ownership with the allocation of assets at a value different from the ownership share generates a capital gain or loss. To apply the reinvestment exemption, the transferred dwelling must be the taxpayer's primary residence on the date of the transfer or must have been so on any day during the two preceding years. Since the inquirer has not resided in the dwelling since their divorce in 2005, this temporal requirement is not met.

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