Back to index
V2927-18 14 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The reinvestment exemption may be applied if the land was acquired less than two years before the sale of the dwelling

A taxpayer inquires whether the reinvestment exemption can be applied to the construction of a dwelling on previously acquired land. The DGT clarifies that the cost of the land is included if it was purchased within the two preceding years and establishes the time limits for self-promotion.

The question raised

Question raised: Time limit for reinvestment and inclusion of the land cost for the purposes of applying the reinvestment exemption on the primary residence.

The DGT's ruling

For the exemption, the reinvestment must be carried out within the period of two years prior to or following the transfer of the primary residence. The amount for the land is considered part of the reinvestment if its acquisition occurred less than two years before the sale of the dwelling. In cases of self-promotion, the acquisition is understood to have occurred upon the completion of the works, which date must be proven or, failing that, the date of the deed of declaration of new construction.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact