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V2056-23 13 July 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The exemption for reinvestment may be applied if the sold property was the primary residence or had been so in the two preceding years

The taxpayer asks whether the exemption for reinvestment in a primary residence may be applied after selling her residence in Motril, which she ceased using as her primary residence following a job transfer. The DGT explains that the exemption requires the sold property to be the primary residence at the time of the transfer or to have been so in the two preceding years.

The question raised

Possibility of applying the exemption for reinvestment in a primary residence for the purposes of Personal Income Tax.

The DGT's ruling

To qualify for the exemption, the transferred property must be the primary residence at the time of sale or must have been so on any day during the two preceding years. A primary residence requires continuous residence for at least three years, except in justified circumstances such as a job transfer. In the event of multiple residences, the primary residence is that where the individual resides for the longest period during each tax period. The condition of primary residence must be met by both the transferred property and the acquired property.

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