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V2837-20 22 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Two-year reinvestment exemption period temporarily suspended due to COVID-19

A query was raised regarding whether the two-year period for acquiring a new property to apply the reinvestment exemption could be extended due to COVID-19. 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, for the purposes of the reinvestment exemption, the 2-year period for the acquisition of the new residence may be extended as a consequence of the COVID-19 epidemic.

The DGT's ruling

Personal Income Tax regulations do not allow exceptions for extending the reinvestment periods for the primary residence. However, due to the Royal Decree-laws regarding the COVID-19 situation, the calculation of the two-year period is suspended from the entry into force of the state of alarm (March 14, 2020) until May 30, 2020. In cases of self-promotion, the acquisition is deemed to have occurred upon the completion of the works.

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