Skip to content
Back to index
V2745-23 9 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption not applicable if the transferred property is not considered a primary residence

A taxpayer inquired whether they could apply the primary residence reinvestment exemption when selling a property in Málaga, which they had never inhabited, to purchase a new one in Benalmádena. The Directorate General for Taxes (DGT) ruled that this is not possible because the transferred property does not meet the requirement of being a primary residence.

The question raised

Possibility of applying the reinvestment exemption for a primary residence for Personal Income Tax purposes.

The DGT's ruling

To qualify for the reinvestment exemption, the transferred property must be considered a primary residence, which requires continuous residence for at least three years or justified exceptional circumstances. In this case, as the property has not been occupied since its acquisition, it is not considered a primary residence and the exemption under Article 38.1 of the Personal Income Tax Law (LIRPF) does not apply.

Book your free first meeting