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V2229-24 15 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Proportional exemption of capital gains only applies if the full amount is not reinvested

The inquirer asks whether the exemption for reinvestment in a primary residence can be applied if only a portion of the proceeds from a sale is reinvested. The DGT rules that only the proportional part of the gain corresponding to the amount actually reinvested will be exempt from tax.

The question raised

Right to apply the exemption for reinvestment in a habitual residence under Article 38 of the Personal Income Tax Law.

The DGT's ruling

To benefit from the exemption, both the transferred and the acquired housing must be habitual residences. If the reinvestment amount is lower than the total amount obtained from the disposal, only the proportional part of the capital gain corresponding to the amount actually invested shall be excluded from taxation. The non-exempt portion of the gain must be included in the savings tax base.

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