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V2593-23 27 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment relief may apply to prefabricated homes and land costs

The taxpayer inquired about the timeframe for claiming reinvestment relief when purchasing a new home or land for a prefabricated house, and whether the cost of the land qualifies as part of the reinvestment. The DGT ruled that the timeframe is two years and that the cost of the land is indeed considered part of the reinvestment.

The question raised

The period in both cases to benefit from the exemption for reinvestment in a primary residence, as well as whether in the second of the scenarios the purchase price of the land is considered a reinvested amount.

The DGT's ruling

The reinvestment must be carried out within a period of two years, either in the two years preceding or following the transfer of the primary residence. A prefabricated house may be considered a primary residence if it is a stable construction adapted for habitation and meets the requirements of effective and permanent residence. In the event of acquiring land to site said house, the acquisition value of the land is taken into account as a reinvested amount provided that it is acquired within the two-year period.

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