Skip to content
Back to index
V2376-24 20 November 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for primary residence: amount to reinvest is transfer value minus outstanding debt

The taxpayer asks what amount must be reinvested to exempt the capital gains from the sale of their primary residence. The DGT clarifies that the amount to be reinvested is the transfer value, subject to a specific reduction if there was an outstanding mortgage.

The question raised

For the purposes of applying the reinvestment exemption, what amount must be subject to reinvestment so that the capital gain generated, if any, from the sale is exempt.

The DGT's ruling

The amount to be reinvested is the transfer value, defined as the sale price minus the inherent expenses and taxes paid by the seller. If the dwelling was acquired with external financing, the amount obtained shall be calculated by subtracting from the transfer value the principal of the loan outstanding at the time of the transfer. If the reinvested amount is less than the amount obtained, only the proportional part of the gain corresponding to the amount actually invested shall be excluded.

Book your free first meeting