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V2038-24 23 September 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for principal residence may apply if sale occurs within two years of ceasing residence

A taxpayer inquired whether they could claim the reinvestment exemption after selling a property that had long ceased to be their principal residence and had been rented out. The Directorate General for Taxes (DGT) ruled that a property is considered a principal residence for up to two years after the owner stops residing in it, allowing for the exemption provided the reinvestment requirements are met.

The question raised

Whether the requirements for the application of the exemption for reinvestment in a primary residence are met.

The DGT's ruling

The transferred property is considered a primary residence if it was so on any day within the two years prior to the date of transfer. Once the taxpayer effectively ceases to reside in the property, they have a period of two years for its sale without losing the right to the exemption. The exemption shall be applied proportionally to the amount reinvested in the new primary residence.

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