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V3283-23 21 December 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption cannot be applied if the sold property was not the main residence in the last two years

A taxpayer inquired whether they could apply the reinvestment exemption when selling their only property, in which they have not resided for 6 years but where they were registered on the municipal roll until 4 years ago. The DGT ruled that this is not possible because the property does not meet the requirement of being the main residence at the time of sale or during the preceding two years.

The question raised

To determine whether, in the event of selling the aforementioned property, the reinvestment exemption would be applicable.

The DGT's ruling

To apply the reinvestment exemption, the transferred property must be the primary residence at the time of sale or have been so on any day during the two preceding years. Mere registration on the municipal roll is insufficient to prove residence and primary residence. Since the taxpayer ceased permanent residence in the property 6 years ago, it does not qualify as a primary residence.

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