Skip to content
Back to index
V3079-23 24 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for principal residence applicable following termination of co-ownership

A taxpayer has enquired whether the exemption for reinvestment in a principal residence can be applied after receiving financial compensation following the adjudication of their share in a jointly owned property during a divorce. The Directorate General for Taxes (DGT) has ruled that the adjudication of the property to the other co-owner generates a capital gain or loss and that, provided the requirements are met, the exemption is applicable.

The question raised

Request to determine whether the exemption for reinvestment in a primary residence would apply for Personal Income Tax purposes.

The DGT's ruling

The allocation of real estate to one of the co-owners, when it does not correspond to their ownership share, generates a capital gain or loss for the other. To qualify for the reinvestment exemption, the transferred property must have been the taxpayer's primary residence at the time of the transfer or on any day during the two preceding years. Likewise, the newly acquired property must comply with the definition of primary residence established in the Regulations.

Book your free first meeting