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V3274-20 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 was purchased up to two years before selling the old one

The inquirer asks whether the exemption for reinvestment in a primary residence can be applied if the new home was purchased using savings prior to the sale of the previous one. The DGT rules that this is possible, provided the purchase was made within the two years preceding the sale and all primary residence requirements are met.

The question raised

Requirements for the application of the exemption for reinvestment in a primary residence.

The DGT's ruling

For the exemption, the reinvestment must be carried out within a period of two years prior to or following the transfer of the primary residence. It is not necessary for the funds obtained from the sale to be the same as those used for the previous purchase, due to 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 transfer. In this case, the exemption applies to the proportional part corresponding to the replacement of the invested savings.

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