The tax exemption for reinvestment in habitual residence is one of the issues that most concerned buyers face. This is especially true for those who already own another property in which they reside in, and whose objective is to sell it and move to the new one. This deduction affects the goodwill obtained with the transaction, that is, the money that is earned from the sale. We will explain in detail everything you need to know about it.
It should be noted that the Tax Agency clearly specifies that the proceeds from the sale of a dwelling are exempt from taxation if they are invested in the purchase of another property that will receive consideration of habitual residence or the renovation of another one that will acquire that use.
To know how much can be saved in this reinvestment, it must be made clear what the Tax Agency understands as equity gain, that is, the difference resulting from deduction of the sale price. However, the equation is further complicated by the need to apply for update coefficients.