Doctrine by topic · DGT Observatory

Partial Reinvestment: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 10 rulings · 2017–2026

Current position

The exemption requires reinvesting the amount obtained in the acquisition or rehabilitation of a new primary residence within a period of two years. In the case of construction, the work must be completed within a maximum of four years from the start of the investment. If the reinvestment is partial, the exemption applies proportionally to the amount actually invested. It is not necessary for the funds to be the same due to the fungible nature of money.

The DGT's position remains constant regarding the treatment of partial reinvestment and the fungibility of money. Clarifications regarding the construction of housing have been integrated, establishing specific deadlines for the completion of the work. The criterion regarding the proportionality of the exemption in the event of incomplete reinvestments is uniform throughout the sequence.

Turning points

  1. V1376-18

    Defines that the amount to be reinvested is the transfer value after deducting expenses and outstanding mortgages, admitting the proportional exemption.

  2. V0064-24

    Establishes that for construction, the work must be completed within a period not exceeding four years from the start of the investment.

Analysis based on 10 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10
V1126-26 19 May 2026

Reinvestment exemption applicable for construction property if timelines met

SG de Impuestos sobre la Renta de las Personas Físicas
exención por reinversiónvivienda habitualganancia patrimonialvivienda en construcciónpromotor LIRPF — Ley 35/2006 del IRPF art. 38.1RIRPF — RD 439/2007, Reglamento del IRPF art. 41
Affects CompanyExpat · Non-residentIndividual
V0695-26 30 Mar 2026

Reinvestment exemption applicable for habitual home purchase

SG de Impuestos sobre la Renta de las Personas Físicas
exención por reinversiónvivienda habitualganancia patrimonialimporte de transmisiónbien fungible LIRPF — Ley 35/2006 del IRPF art. 38.1RIRPF — RD 439/2007, Reglamento del IRPF art. 41
Affects CompanyExpat · Non-residentIndividual
V1376-18 24 May 2018

Reinvestment of sale proceeds required for main residence tax exemption

SG de Impuestos sobre la Renta de las Personas Físicas
exención por reinversiónvivienda habitualganancia patrimonialvalor de transmisiónreinversión parcial LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 34
Affects CompanyExpat · Non-residentIndividual

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