Back to index
V2979-20 5 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if funds are used to cover spouse's housing costs

A taxpayer inquired whether proceeds from the sale of their separate primary residence could qualify as a reinvestment if used to pay for the acquisition costs of a property inherited by their spouse. The Directorate General of Taxes (DGT) ruled that they cannot, as the tax exemption requires the taxpayer to acquire ownership of the new property.

The question raised

Whether the private amount allocated to cover said costs will be considered a reinvestment for the purposes of qualifying for the exemption for reinvestment in a primary residence.

The DGT's ruling

The exemption for reinvestment in a primary residence is linked to the taxpayer's ownership of full title to the property. The amount obtained from the sale of a private residence retains its private character. If the funds are not used for the taxpayer themselves to acquire a percentage of ownership in the new residence, it shall not be considered a reinvestment.

Book your free first meeting