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V2789-18 24 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption denied if the sold property was not a primary residence in the two years prior to sale

A taxpayer inquired whether they could apply for the reinvestment exemption after selling a property where they resided until 2006. The Directorate General for Taxes (DGT) ruled that this is not possible, as the property was neither the taxpayer's primary residence at the time of sale nor during the preceding two years.

The question raised

Whether the exemption for reinvestment in a primary residence is applicable.

The DGT's ruling

To apply the exemption for reinvestment, the transferred property must be the primary residence at the time of sale or have been so on any day during the two years prior to the transfer. In this case, as it ceased to be the primary residence in 1996, the requirement is not met. Likewise, the exemption for the establishment of a life annuity is not applicable as the taxpayer has not reached 65 years of age.

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