Two adjacent dwellings physically joined may be considered a primary residence

The nature of the primary residence for the application of tax exemptions in Personal Income Tax (IRPF) has been clarified by the tax administration. Specifically, it has addressed the situation of taxpayers who own two adjacent properties that, although maintaining their separate registry status, are physically joined internally.

What the DGT has ruled

The Directorate General of Taxes (DGT) has determined that there is no legal impediment to considering two adjacent dwellings joined internally as a primary residence, even if they have not undergone registry unification. This criterion is based on the physical reality of the residence and not exclusively on the property's configuration in the Land Registry.

However, the ruling establishes two fundamental conditions for this criterion to be applicable:

• Effective residence: One must reside in both dwellings on a habitual basis.
• Cadastral identification: Since each property has its own cadastral reference, both must be provided when completing the primary residence data in the corresponding tax returns.

What this means for you

This criterion is directly relevant to individuals wishing to apply the exemption for reinvestment in a primary residence following the sale of their home. If your current home consists of two adjacent units joined internally, you may benefit from the exemption provided that you meet the effective residence requirements.

It is important to note that the administration emphasizes that the accreditation of residence is a matter of fact. This implies that the burden of proof lies with the taxpayer, who must demonstrate that they effectively inhabit both spaces on a habitual basis.

What you should do

In such a situation, it is necessary to ensure that the physical reality of the dwelling matches how it is declared to the Tax Agency (AEAT). When carrying out the sale and subsequent reinvestment, both cadastral references must be included to avoid discrepancies with the information in the Cadastre.

Since accrediting residence is the responsibility of the taxpayer, it is recommended to have elements available that allow for proof of habitual residence in both properties. Each particular situation must be assessed to ensure compliance with IRPF regulations and the Personal Income Tax Regulations.