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V3160-18 12 December 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Possibility of applying the reinvestment exemption for a new primary residence located abroad

The taxpayer asks whether the reinvestment exemption for a primary residence can be applied if the new property is located in another European Union country following a change of residence. The DGT rules that the regulations do not require the new residence to be located within Spanish territory.

The question raised

Whether the exemption for reinvestment in the habitual residence may apply in the event that the proceeds from said sale are reinvested in a new dwelling located in the country to which the taxpayer transfers their residence.

The DGT's ruling

To apply the exemption, both the transferred and the acquired dwelling must be the habitual residence. The RIRPF does not require the location of the new dwelling to be within Spanish territory. The exemption only applies if the taxpayer maintains the status of tax resident in Spain during the tax period of the transfer and the reinvestment requirements and deadlines of Article 41 of the RIRPF are met.

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