Skip to content
Back to index
V2246-24 21 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the sold property was not the primary residence

A taxpayer inquired whether they could apply the reinvestment exemption after selling their only property to purchase another. The DGT ruled that this is not possible because the sold property was not their primary residence, as it was being rented out and they resided elsewhere.

The question raised

Whether the exemption for reinvestment in a primary residence is applicable.

The DGT's ruling

To apply the exemption for reinvestment, the dwelling must be qualified as a primary residence both in the one being transferred and in the one being acquired. The primary residence is that which constitutes the residence for a continuous period of at least three years, except for justified exceptions. In this case, as the transferred dwelling is not the primary residence, the exemption under Article 38.1 of the Personal Income Tax Law (LIRPF) does not apply.

Book your free first meeting