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V3043-17 22 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for main residence cannot be applied if current home was acquired more than two years ago

Consultants inquired whether they could apply the reinvestment exemption to their current home after selling their previous residence. The DGT ruled that this is not possible because the current home was acquired more than two years ago and the previous residence ceased to be the main residence more than two years ago.

The question raised

Whether they may benefit from the exemption for reinvestment in a primary residence, in the event that a capital gain is generated upon its sale.

The DGT's ruling

To apply the exemption, the transferred property must have been the taxpayer's primary residence at the time of sale or during the two preceding years. Likewise, the reinvestment must be allocated to a property acquired within the two-year period prior to the transfer. In this case, both requirements are not met: the former residence ceased to be the primary residence more than two years ago and the new property was acquired more than two years ago.

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