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V2558-17 10 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if new home was purchased up to two years before selling the primary residence

The taxpayer asks whether they can benefit from the reinvestment exemption if the new home was acquired prior to selling the current one. The DGT rules that this is possible, provided the requirements regarding the status of primary residence are met and the amount reinvested is equivalent to the proceeds from the sale.

The question raised

Requirements to qualify for the exemption for reinvestment in a primary residence.

The DGT's ruling

The exemption requires that both dwellings be primary residences and that the reinvestment be carried out within a period of two years, either before or after the transfer. It is not necessary for the funds obtained from the sale to be the same as those used for the previous purchase, due to the fungible nature of money. It is sufficient that the amount invested in the new dwelling is equivalent to or greater than the amount obtained from the sale of the old one for the gain to be understood as being allocated to the new dwelling.

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