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V3449-20 27 November 2020 · 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 a primary residence in the previous two years

A taxpayer inquired whether they could apply the reinvestment exemption when selling a property in Barcelona to purchase another. The Tax Agency ruled that this is not possible because the property ceased to be a primary residence in 2007, exceeding the required two-year period.

The question raised

Whether the exemption for reinvestment in a habitual residence is applicable.

The DGT's ruling

To apply the exemption, the transferred property must be the habitual residence at the time of sale or have been so on any day during the two preceding years. In this case, as residency ceased in 2007, it does not meet the habitual residence requirement for the intended sale. The resulting capital gain must be included in the savings tax base.

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