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V3663-20 29 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

The reinvestment exemption requires that both the transferred and the acquired property be the habitual residence

A taxpayer inquires whether a property can be considered a habitual residence for the purpose of applying the reinvestment exemption after residing in it for more than 190 days per year. The DGT explains that the habitual residence must be the residence for at least three continuous years, subject to legal exceptions, and that the proof of residence is a matter of fact.

The question raised

Whether property A can be considered a habitual residence for the purposes of applying the reinvestment exemption.

The DGT's ruling

For the reinvestment exemption, both the transferred and the acquired property must be the habitual residence. The habitual residence is considered to be the building that constitutes the residence for a continuous period of at least three years, except in exceptional circumstances such as death, marriage, or job relocation. The proof of residence is a matter of fact that must be proven by the taxpayer by any means admitted in Law.

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