Skip to content
Back to index
V2312-24 8 November 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Exemption for reinvestment in main residence applicable if residency and deadline requirements are met

The inquirer asks about the requirements for applying the Personal Income Tax (IRPF) exemption when selling a main residence to purchase another. The Directorate General for Tax Regulations (DGT) explains that both properties must be main residences and that the reinvestment must take place within a two-year period.

The question raised

Requirements for applying the exemption for reinvestment in a primary residence.

The DGT's ruling

For the exemption, both the transferred and the acquired housing must be primary residences, understood as continuous residence for at least three years or justified exceptional circumstances. The reinvestment of the amount obtained must be carried out within a period of two years, either before or after the date of disposal. If external financing is used, the amount to be reinvested is the transfer value minus the outstanding principal to be amortized. If the reinvestment is less than the total amount obtained, only the proportional part of the gain shall be excluded.

Book your free first meeting