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V2049-20 23 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for main residence may apply if new home is acquired within two years before or after the sale

The taxpayer asks whether the exemption for reinvestment in a main residence can be applied if they have already purchased a plot of land and built a new house before selling their previous one. The DGT rules that this is possible, provided that the legal acquisition of the new residence occurs within a two-year period relative to the transfer of the previous one.

The question raised

For the purposes of applying the exemption for reinvestment in a primary residence, the period for reinvesting the amount obtained from the transfer.

The DGT's ruling

For the exemption, the reinvestment must be carried out within a period not exceeding two years from the transfer, either in the two years preceding or following the same. In cases of construction, the acquisition date is the date of completion of the works. It is not necessary for the funds obtained from the sale to be the same as those used for the new purchase, due to the fungible nature of money. The exemption covers both the replacement of previously invested savings and the amortization of loans for the new dwelling.

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