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V2238-24 15 October 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · exención por reinversión

Reinvestment exemption not applicable if funds are used for Treasury bills instead of a life annuity

A 74-year-old taxpayer inquired whether they could apply for the reinvestment exemption after selling a warehouse and allocating the proceeds to Treasury bills. The DGT ruled that the exemption requires the establishment of a life annuity through an insurance company.

The question raised

1. Possibility of applying the exemption for reinvestment provided for in Article 38.3 of the Personal Income Tax Law.

The DGT's ruling

To apply the capital gains exemption for individuals over 65, the amount obtained must be used to establish an insured life annuity in favor of the taxpayer. Said annuity must be mandatorily contracted with an insurance entity. As this requirement is not met through the purchase of treasury bills, the exemption is not applicable.

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