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V3659-20 29 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Two-year window for home reinvestment tax exemption suspended between March and May 2020

A query was raised regarding whether the state of alarm and COVID-19 mobility restrictions affected the two-year period allowed to reinvest proceeds from the sale of a primary residence. The Directorate-General for Taxes (DGT) ruled that the calculation of this period was suspended only during the timeframe between 14 March and 30 May 2020.

The question raised

Whether the validity of the state of alarm declared as a result of the COVID-19 epidemic, as well as the mobility restrictions imposed in the Autonomous Community of Catalonia, affect the calculation of the two-year period referred to in Article 38 of the LIRPF in relation to the exemption for reinvestment in the primary residence.

The DGT's ruling

The two-year period for the reinvestment of the amount obtained from the disposal of the primary residence was affected by the regulations on urgent measures due to COVID-19. The calculation of said period was only suspended from the entry into force of Royal Decree 463/2020, on March 14, 2020, until May 30, 2020.

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