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V3332-20 11 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Amounts received prior to the sale of a primary residence form part of the transfer value

A taxpayer has enquired about the tax treatment of selling their primary residence when receiving advance payments before the transfer, and whether the reinvestment relief can be applied. The DGT clarifies that amounts received in advance are included in the transfer value and that the relief requires the reinvestment of the total amount obtained into a new primary residence within the statutory period.

The question raised

Tax treatment of said sale in the Personal Income Tax and possible application of the exemption for reinvestment in a primary residence.

The DGT's ruling

The transfer of the dwelling generates a capital gain or loss in the period in which the change in assets occurs. Amounts received prior to the transfer form part of the transfer value of the dwelling. For the reinvestment exemption, a new primary residence must be acquired within a period of two years (prior to or following the sale) and an amount equivalent to the amount obtained from the transfer must be invested.

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