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V2268-24 23 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Intent to reinvest in primary residence must be declared in the tax year of the sale

The taxpayer asks when they must declare their intention to apply the reinvestment exemption if the new property is purchased before the old one is sold. The DGT rules that this must be indicated in the tax return for the financial year in which the transfer of the old property occurs.

The question raised

Regarding the exemption for reinvestment in the primary residence, and in the event that the acquisition of the new dwelling occurs before the transfer of the previous primary residence, at what point must the intention to apply the exemption be stated?

The DGT's ruling

If the new dwelling is acquired within the two-year period prior to the transfer of the old one, the exemption may be applied. In this case, the taxpayer must state their intention to apply the exemption in the Personal Income Tax return for the tax period in which the capital gain from the transfer is realized.

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