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V2459-19 16 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption requires change of residence to be due to necessary circumstances

A query was raised regarding whether a property can be considered a primary residence for the reinvestment exemption if the owner has not resided there for three years due to family growth. The DGT ruled that the change must be necessitated by circumstances requiring a change of domicile, rather than being a voluntary decision.

The question raised

Possibility of achieving the status of habitual residence despite not remaining in it for three years, considering the concurrent circumstances, for the purposes of applying the reinvestment exemption.

The DGT's ruling

For a dwelling to be considered a habitual residence without meeting the three-year period, circumstances must arise that necessarily require a change of domicile. Family growth or the search for a larger dwelling or one closer to the workplace are not considered circumstances that compel a change. If the change of residence is a voluntary option and not an indispensable necessity, the status of habitual residence is not achieved.

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