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V2244-24 21 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption not applicable if new property was acquired more than two years before the transfer

A taxpayer inquired whether they could apply the reinvestment exemption for a primary residence following the allocation of their share of a property after a divorce. The DGT ruled that this is not permissible because the new property was acquired in 2021, prior to the transfer of the previous residence in 2024.

The question raised

Request to determine whether the exemption for reinvestment in the habitual residence would apply for Personal Income Tax purposes.

The DGT's ruling

For the reinvestment exemption, the new dwelling must be acquired within a period of two years prior to or following the transfer of the habitual residence. Although case law allows for the dwelling remaining with the other spouse after a divorce to be considered the habitual residence, the taxpayer may not use a dwelling acquired prior to the transfer for this purpose. In this case, the acquisition in 2021 does not comply with the timeframe regarding the transfer in 2024.

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