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V3038-19 29 October 2019 · 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 sold property was the primary residence up to two years prior to the transfer

A taxpayer asks whether she can apply the reinvestment exemption after selling her primary residence in Seville to purchase a new one in Madrid following a job relocation. The DGT responds that the sold property retains its status as a primary residence for up to two years after the taxpayer ceases to reside in it.

The question raised

Application of the reinvestment exemption for the primary residence.

The DGT's ruling

To apply the exemption, the transferred property must be the primary residence at the time of sale or have been so on any day during the two preceding years. Once effective residence ceases, the taxpayer has a two-year period to sell the property without losing the right to the exemption. In this case, the sale must be completed before August 2021 to comply with the two-year period since it ceased to be the primary residence.

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