Spain's Tax Agency clarifies IRPF exemption for home sales

The Tribunal Económico‑Administrativo Central (TEAC) of Spain's Ministry of Finance issued a resolution on 13 July 2026 establishing a uniform rule for applying the IRPF capital‑gain exemption when a married couple, under the community‑property regime, sells their habitual residence and reinvests the proceeds in a new home. The ruling specifies how much of the transaction can benefit from the exemption, ending previous divergent interpretations by administrative courts.

In a related binding inquiry, the Spanish Tax Agency (Agencia Tributaria) confirmed that a property registered in the cadastral system as a professional office does not disqualify the seller from the exemption, provided the taxpayer can demonstrate that the dwelling was used as their habitual residence. The exemption requires full reinvestment of the sale amount in a new residence within two years and occupation of the new home within twelve months of acquisition or completion of works.