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V2594-20 30 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Land acquisition does not count as reinvested amount and deadlines are suspended due to COVID-19

The taxpayer asks whether purchasing a plot of land for the construction of their primary residence qualifies for the reinvestment exemption and how the state of alarm affects the two-year deadline. The DGT rules that the plot of land is not included in the reinvested amount and that deadlines were suspended due to the health crisis.

The question raised

Whether the reinvestment exemption is applicable, and whether the acquisition of the plot is considered included for the purposes of the reinvested amount. Likewise, the effects of the declaration of the state of alarm on the 2-year period for the acquisition of the new dwelling.

The DGT's ruling

For the exemption, the acquisition of the new dwelling must occur legally within the period of two years prior to or following the transfer of the old one. The purchase of the plot is not taken into account for the purposes of the reinvested amount as it was not carried out within the period of two years prior to the transfer. Due to the state of alarm, the calculation of the two-year period is suspended from March 14, 2020, until May 30, 2020.

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