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V2071-18 12 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the transferred property is not the main residence

The taxpayer asks whether they can apply the reinvestment exemption after selling a property that had been rented out following a job relocation. The DGT rules that this is not possible because the property no longer qualifies as the main residence.

The question raised

Possibility of applying the exemption for reinvestment in a habitual residence regarding the capital gain obtained.

The DGT's ruling

To apply the exemption, the transferred property must be the habitual residence at the time of the transfer or have been so on any day during the two preceding years. Habitual residence requires continuous residence for at least three years, except in circumstances such as job relocation that allow for such status to be maintained if the period has not been completed. In this case, as the property has not been resided in since 2010, the habitual residence requirement is not met.

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