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V2558-20 28 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Reinvestment exemption for principal residence may include mortgage repayment amounts

A taxpayer has requested clarification on calculating capital gains and the reinvestment exemption when a property was acquired prior to entering a community property marriage. The DGT clarifies how ownership is determined under the Civil Code and how to calculate the reinvested amount.

The question raised

Method of calculating the capital gain obtained, and whether the reinvestment exemption is applicable, and if so, whether for the purposes of determining the reinvested amount, the amortization of the mortgage credit within the two years following the transfer is considered.

The DGT's ruling

Ownership of the dwelling under the community property regime corresponds pro indiviso to the original owner and to the community of property according to the proportion of the contributions. For the reinvestment exemption, the reinvested amount includes both the price and expenses paid in the sale and purchase as well as the amount intended to cancel the principal of the mortgage loan within the two years following the transfer. The exemption applies proportionally to the percentage of ownership of each party in the transferred dwelling and in the new one.

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