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V3273-20 4 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption applicable if new home is purchased up to two years before selling the previous one

The inquirer wishes to purchase a new home using savings before selling their current primary residence. The DGT rules that the exemption applies if the purchase is made within the two-year period prior to the sale of the old property.

The question raised

Whether the exemption for reinvestment in a primary residence is applicable.

The DGT's ruling

To qualify for the exemption, the new residence must be the primary residence and the reinvestment must be carried out within a period of two years prior to or following the transfer. Given the fungible nature of money, it is sufficient that the amount invested in the new residence is equivalent to or greater than the amount obtained from the sale of the old one. In the case of prior purchases, the exemption applies to the portion of the gain corresponding to the replacement of the invested savings.

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