Back to index
V3012-23 21 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Improvement works may be added to the acquisition value, but the reinvestment exemption does not apply if the dwelling is not a primary residence

The taxpayer asks whether the rehabilitation works on her dwelling in Teruel can be counted as an increase in the acquisition value and whether she can apply the reinvestment exemption when selling it and investing in another dwelling. The DGT responds that only improvement or expansion works count as acquisition value, and that the exemption is not applicable because the dwelling was not her primary residence.

The question raised

Question raised 1st Consideration of the rehabilitation works carried out on the dwelling in Teruel as an increase in the acquisition value for the purposes of calculating the capital gain generated by its sale.

The DGT's ruling

Improvement or expansion works that increase the capacity, habitability, or useful life of the property may be integrated into the acquisition value. Conversely, repair and maintenance expenses intended to maintain normal use do not form part of said value. The reinvestment exemption is only applicable if the transferred dwelling is considered a primary residence, which requires continuous residence of at least three years or exceptional circumstances justifying the change of domicile.

Email
Contact