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V2770-23 10 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the sold property was not a primary residence in the previous two years

The taxpayer asks whether they can apply the reinvestment exemption when selling a property that has been rented out since 2018 to purchase another. The DGT rules that this is not possible because the property does not meet the requirement of being a primary residence.

The question raised

Whether the exemption for reinvestment in a habitual residence would be applicable.

The DGT's ruling

To apply the exemption, the transferred property must be the habitual residence at the time of sale or have been so on any day during the two years prior to the transfer. Since the property has been rented since 2018, it does not constitute the habitual residence either at the time of sale or during the preceding two-year period. Therefore, the exemption under Article 38.1 of the LIRPF cannot be claimed.

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