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V2183-24 11 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Total value of new home may be considered reinvested even when using third-party financing

The taxpayer inquired about the amount to be considered reinvested for the principal residence exemption following the dissolution of a co-ownership. The Directorate General for Taxes (DGT) ruled that the total acquisition value of the new home is considered reinvested, even if financed through third-party loans or personal savings.

The question raised

What amount must be considered reinvested for the purposes of applying the reinvestment exemption on the habitual residence.

The DGT's ruling

For the reinvestment exemption, the total acquisition value paid for the new dwelling within the two-year period is considered the reinvested amount. This is applicable regardless of whether said value has been financed through third-party loans or own funds. For the exemption to proceed, the transferred dwelling must have been the habitual residence at the time of the transfer or during the two preceding years.

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