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V2215-24 15 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if new home is acquired or built up to two years before selling the old one

The inquirer asks about the time limits for the reinvestment exemption on a primary residence following the construction of a new home. The DGT clarifies that reinvestment can occur either before or after the sale and establishes the occupancy requirements for the new home to be classified as a primary residence.

The question raised

1st For the purposes of applying the reinvestment exemption on the habitual dwelling, from which date does the two-year period commence to carry out the reinvestment, and what is the period for occupying the new dwelling such that it is considered habitual.

The DGT's ruling

The reinvestment exemption allows the purchase or construction of the new dwelling to be carried out within the period of two years prior to or following the sale of the old one. In cases of self-promotion, the acquisition date is the date of completion of the works. For the new dwelling to be considered habitual, it must be effectively and permanently inhabited within a period of twelve months from its acquisition or the completion of works, subsequently fulfilling the requirement of continuous residence for three years.

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