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V2648-17 18 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The reinvestment exemption cannot be applied if the sold property ceased to be a primary residence more than two years ago

A taxpayer sold a property in 2016 that ceased to be their primary residence in 2013, having already purchased a new property in 2015. The DGT rules that the reinvestment exemption cannot be applied because the transferred property no longer qualifies as a primary residence.

The question raised

Whether it is possible to avail of the reinvestment exemption for a primary residence and, if so, the timeframe for reinvestment.

The DGT's ruling

For a property to be considered a primary residence for the purposes of the reinvestment exemption, it must have served as a residence for at least three continuous years. Furthermore, the transfer must take place while the building is a primary residence or has been one at any time during the two years prior to the date of transfer. As more than two years have elapsed since the property ceased to be a primary residence until its sale, the exemption is not applicable.

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