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V2614-23 27 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable when using proceeds from sale of main residence to acquire a co-heir's share

A taxpayer intends to sell her main residence and use the proceeds to purchase a co-heir's share in an inherited property. The DGT rules that the reinvestment exemption can be applied provided the acquisition occurs within the legal timeframe and all main residence requirements are met.

The question raised

Possibility of applying the exemption for reinvestment in a primary residence to the portion of the inherited property acquired from the remaining co-heir.

The DGT's ruling

In order for the gain from the sale of the primary residence to be exempt, the total amount obtained must be reinvested in the acquisition of a new primary residence within a period of two years (prior to or following the sale). In this case, acquisition through the dissolution of a joint ownership, where a co-heir transfers their share in exchange for financial compensation, allows for the application of the exemption if the timeframes and primary residence requirements are met for both properties.

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