Transfer of the primary residence with reinvestment

If you transfer your primary residence, the capital gain obtained in the transfer may be exempt when the total amount obtained from the transfer is reinvested in the purchase of another primary residence or in the refurbishment of the one that is going to be your primary residence.

The exemption is not applied automatically, but you must express your wish for an exemption and it is conditional on both the transferred property and the acquired property or, where applicable, the renovated property being considered as your primary residence, as well as the reinvestment being made within the terms and conditions established by law.

The reinvestment of the amount obtained from the transfer must be carried out, in one go or successively, in a period of no longer than two years, counted from date to date, which may be both before and after the sale of the previous main residence.

The reinvestment is not made after the deadline if the sale was made in instalments or at a deferred price, provided that the amount of the instalments is used for the stated purpose within the tax period in which they are received.

When the amount of the reinvestment is less than the total amount obtained from the transfer, only the portion of the capital gain corresponding to the amount effectively reinvested is excluded from the tax, under the conditions outlined previously.