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V2767-20 10 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Two-year deadline for reinvestment in main residence suspended due to state of alarm

The taxpayer inquired whether the COVID-19 state of alarm affected the two-year period allowed for reinvesting the proceeds from the sale of their main residence. The Directorate-General for Taxes (DGT) ruled that the calculation of this period was suspended from 14 March 2020 to 30 May 2020.

The question raised

Whether the validity of the state of alarm declared as a result of the COVID-19 epidemic affects the calculation of the two-year period referred to in Article 38 of the LIRPF in relation to the exemption for reinvestment in the primary residence.

The DGT's ruling

Due to the regulations on urgent measures due to COVID-19, the limitation periods and expiration of tax rights were suspended during the state of alarm. Therefore, the two-year period for reinvestment in a new dwelling was halted from the entry into force of Royal Decree 463/2020, on March 14, 2020, until May 30, 2020.

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