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V2573-18 20 September 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if new home is purchased before selling the previous one

The inquirer asks whether the exemption for reinvestment in a primary residence can be applied if the new property is purchased using savings prior to the sale of the current one. The DGT rules that this is possible, provided that the statutory timeframes and requirements regarding habitual residence are met.

The question raised

Whether the exemption for reinvestment in a habitual residence is applicable.

The DGT's ruling

For the exemption to apply, it is sufficient that the taxpayer invests, within a period of two years, either prior to or following the sale, an amount equivalent to the proceeds obtained from the transfer. It is not necessary that the funds be the same, given the fungible nature of money. The transfer of the former residence must contribute to satisfying the cost of the new residence or its financing. It is required to prove the reality of both transfers, the status of both properties as habitual residences, and the equivalence of the amounts.

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