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V2082-24 26 September 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if new home was purchased up to two years before selling the previous one

A taxpayer purchased a new property five months before selling their former primary residence. The Tax Agency has confirmed that the reinvestment exemption can be applied, provided that an amount equivalent to the proceeds from the sale is reinvested.

The question raised

Possibility of applying the exemption for reinvestment in a primary residence.

The DGT's ruling

The exemption requires that the new residence be the primary residence and that the total amount obtained be reinvested within a period of two years prior to or following the sale. It is not necessary for the funds to be the same, as money is fungible. For the calculation of the reinvested amount, the total acquisition value of the new residence is considered, regardless of whether it has been financed through a mortgage loan or own funds.

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