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V3294-17 27 December 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Exemption for reinvestment in primary residence can be maintained up to two years after moving out

The taxpayer asks whether renting a property in another city for one year before selling their primary residence in Madrid would result in the loss of the reinvestment exemption. The DGT rules that the transferred property retains its status as a primary residence for up to two years after effective residence ceases.

The question raised

Whether, upon moving to Zaragoza on a rental basis, their residence in Madrid loses the status of "habitual residence" and, therefore, could not benefit from the reinvestment exemption, or if there is any type of deadline.

The DGT's ruling

For the reinvestment exemption, the transferred residence is considered habitual if it was so up to any day within the two years prior to the date of transfer. Therefore, after ceasing to reside effectively in the residence, the taxpayer has a period of two years for its sale without losing the right to the exemption. The new residence must be acquired within a period not exceeding two years from the transfer of the previous one.

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