05/06/2026
She sold her home and reinvested what she got into a new property in Spain. Under Spanish tax law, there’s an exemption that means she didn’t owe Hacienda a single euro on that gain. It’s called reinversión en vivienda habitual.
But there’s a condition most people don’t know about until it’s already too late.
Her California apartment had to have been her habitual residence before she sold it. And for Hacienda to recognise it as such, she needed to have lived there continuously for at least three years. Not three years as the owner. Three years actually living there.
She had. So the exemption applied.
Now, she didn’t have to still be living there at the moment of sale. Spanish law gives you up to two years from the day you leave to sell it and still have it count. But those three years of actual residence have to come first.
And once she sold, she had two years to reinvest the proceeds into her new Spanish home. She was already in the process of buying in Costa Brava. The numbers worked.
If you’re planning to sell a property abroad and move to Spain, the timing of when you establish tax residency matters more than most people realise.
Save this if you’re planning a move to Spain and still own property abroad.