Skip to content
Back to index
V2538-20 27 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Two-year reinvestment period for principal residence cannot be extended due to construction company liquidation

The taxpayer asks whether the two-year period to reinvest the proceeds from the sale of their principal residence can be extended due to the liquidation of the construction company involved. The DGT rules that the regulations do not allow for exceptions to these deadlines, although they do provide for a temporary suspension due to the COVID-19 situation.

The question raised

Whether the 2-year period for the acquisition of the new dwelling may be extended as a consequence of the liquidation of the construction company.

The DGT's ruling

The exemption for reinvestment requires that the legal acquisition of the new dwelling occurs within the two years preceding or following the transfer of the previous one. The periods set by years are computed from date to date according to the Civil Code, without the possibility of extension due to external causes such as the liquidation of a construction company. Only the suspension of periods established by Royal Decree-laws due to the COVID-19 health crisis shall apply.

Book your free first meeting