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V2990-20 5 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption: change of residence due to exceptional circumstances must be necessary

A taxpayer asks whether their home can be considered a primary residence for the reinvestment exemption following a job transfer, despite not having resided there for three years. The DGT states that the change of residence must be a mandatory necessity rather than a voluntary choice or a matter of convenience.

The question raised

Possibility of attaining the status of habitual dwelling despite not remaining in it for three years, considering the concurrent circumstances, for the purposes of applying the reinvestment exemption.

The DGT's ruling

The dwelling is considered habitual if one resides in it for three continuous years, unless circumstances arise that necessarily require a change of residence, such as a job transfer. The term 'necessarily' implies that the change must be an unavoidable obligation, rather than an option of convenience. The assessment of whether the circumstance requires a change of residence is a matter of fact to be resolved by the management and inspection bodies through the evaluation of the evidence provided.

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