Doctrine by topic · DGT Observatory

Residency Requirement: 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 42 rulings · 2014–2024

Current position

To maintain the relief for the primary residence, the successor must maintain the value of the relief in an asset with the character of a residence. It is possible to acquire two or more dwellings with the proceeds from the sale, provided that the requirement to maintain the value in at least one of them is met. Otherwise, the right to the entirety of the relief applied is lost.

The DGT's position remains constant in requiring the maintenance of the value through immediate reinvestment in a dwelling. Throughout the rulings, it has been specified that reinvestment cannot be carried out in bank accounts or financial products and that corporate operations do not break the requirement. The latest ruling allows the acquisition of multiple dwellings as long as the value is maintained in at least one.

Turning points

  1. V1353-24

    Allows the acquisition of two or more dwellings with the proceeds from the sale, provided that the maintenance of the value is met in at least one of them.

Analysis based on 42 of 42 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V3279-18 26 Dec 2018

Loss of primary residence tax relief if reinvestment is not immediate following sale

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
reducción por vivienda habitualrequisito de permanenciareinversiónadquisición mortis causapermuta LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.2.cLGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V2720-18 15 Oct 2018

95% Inheritance Tax reduction applicable to company shares

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
reducción por empresa familiaradquisición mortis causaexención impuesto sobre el patrimoniofunciones de direcciónrequisito de permanencia LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.2.cLIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4.Ocho. Dos
Affects CompanyExpat · Non-residentIndividual
V0060-18 17 Jan 2018

Exemption for main residence maintained if reduced value is reinvested in a new home

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
adquisición mortis causareducción por vivienda habitualrequisito de permanenciareinversiónimpuesto sobre sucesiones y donaciones LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.2.cLIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4
Affects CompanyExpat · Non-residentIndividual
V1319-17 29 May 2017

Loss of inheritance tax relief if reinvestment in a new home is partial

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
reducción por vivienda habitualreinversiónadquisición mortis causarequisito de permanenciabase imponible LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.2.cLGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V0833-17 4 Apr 2017

Loss of main residence relief if reinvestment is not immediate following transfer

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
reducción por vivienda habitualtransmisión mortis causarequisito de permanenciareinversión inmediatavalor de adquisición LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.2.cLIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4
Affects CompanyExpat · Non-residentIndividual
V0483-17 23 Feb 2017

95% reduction in Inheritance Tax applicable to Historical Heritage assets

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
reducciónpatrimonio históricobien de interés culturaladquisición mortis causarequisito de permanencia LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.1LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.2.c
Affects CompanyExpat · Non-residentIndividual

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