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V2779-23 10 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

No extension available for the reinvestment period of the main residence following a sale

A taxpayer has enquired whether the reinvestment period can be extended due to judicial proceedings for the rescission of a sale and what occurs if the contract is declared void. The DGT has ruled that there are no extensions to the reinvestment period and that a judicial annulment that restores the parties to their original positions would result in the disappearance of the capital gain.

The question raised

It is asked whether there is any possibility of extending the reinvestment period due to the judicial situation and what would happen if the nullity, rescission, or termination of the sale were judicially declared.

The DGT's ruling

The regulations do not provide for any extension of the two-year period for the reinvestment of the amount obtained from the disposal of the primary residence. If a judicial declaration of nullity, rescission, or termination of the sale results in the reciprocal restitution of contributions, returning to the initial legal state, the alteration in the composition of the assets that determined the capital gain would cease to exist.

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