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V2249-24 21 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption requires property to have been habitual residence and owned for three years

The taxpayer asks whether they can apply for the reinvestment exemption after receiving a property through a pact of improvement in Galicia. The DGT rules that, for a property to qualify as a habitual residence, the individual must have resided in it and held full ownership for at least three continuous years from the date of acquisition.

The question raised

Possibility of applying the exemption for reinvestment.

The DGT's ruling

The exemption for reinvestment requires that the transferred property has been the habitual residence for a continuous period of at least three years. In order to satisfy this requirement, the taxpayer must have held full ownership of the property during said period. The period of residence prior to the acquisition of ownership cannot be taken into account. In this case, the three-year period must be counted from the acquisition via the pact of improvement.

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