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V3323-19 4 December 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The reinvestment exemption cannot be applied if the new dwelling was acquired more than two years prior to the sale

The taxpayer asks whether the reinvestment exemption can be applied when selling her primary residence and using the proceeds to repay a personal loan, having already acquired a new dwelling in 2016. The DGT responds that the exemption is not applicable because the new dwelling was acquired outside the two-year period preceding the transfer.

The question raised

Whether the reinvestment exemption is applicable to the capital gain obtained in the case of the transfer of the dwelling.

The DGT's ruling

To apply the reinvestment exemption, the new dwelling must have been acquired within the two-year period prior to the transfer of the primary residence. In this case, the new dwelling was acquired in 2016 and the transfer is planned for a later date, exceeding the required two-year period. Furthermore, the exemption requires that both the transferred dwelling and the acquired dwelling be considered primary residences.

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