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V2391-25 9 December 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption not applicable if sold property was not habitual residence

A taxpayer asks whether a property rented after ceasing to reside in it can be considered a habitual residence for reinvestment exemption purposes. The DGT responds that it cannot, as the taxpayer has not resided in it nor did they reside there in the two years prior to sale.

The question raised

To determine whether, in the event of selling their owned property now, it is considered habitual for the purposes of the reinvestment exemption under Article 38 of the Personal Income Tax Law (LIRPF).

The DGT's ruling

For the reinvestment exemption, the transferred property must be the habitual residence at the time of sale or have been so during the two preceding years. Habitual residence requires continuous residence for at least three years, except in exceptional circumstances requiring a change of domicile. In this case, having ceased to reside in the property in October 2020, it does not meet the requirements to be considered habitual on the date of the transfer.

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