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V3087-23 24 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Selling a new home before three years of residence may lead to loss of reinvestment exemption

A taxpayer asks whether they would lose the reinvestment exemption for their primary residence if they sell their new home before completing three years of residence due to financial difficulties following a divorce. The DGT indicates that economic hardship does not necessarily constitute a mandatory change of residence required to avoid losing the exemption.

The question raised

If, in the event of proceeding with the sale of the dwelling, the right to the reinvestment exemption already applied would be lost.

The DGT's ruling

To maintain the exemption, the new dwelling must be the primary residence, which requires residing in it for at least three years, except in circumstances that necessarily require a change of residence. Economic difficulties do not in themselves imply a requirement to dispose of the dwelling, as it is generally a voluntary decision. If the sale is not considered to be due to indispensable necessity, the capital gain from the original sale must be regularized through a supplementary self-assessment including late payment interest.

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