Taxation in Spain of the sale of a property in Uruguay by a Spanish tax resident

A Spanish tax resident enquires about the taxation of the sale of a property in Uruguay, which resulted in a patrimonial loss under Uruguayan law. The DGT states that the transaction must be taxed in Spain in accordance with IRPF rules and the Spanish-Uruguayan tax treaty.

The sale of a property in Uruguay by a Spanish tax resident is subject to Spanish taxation, even if it results in a patrimonial loss, under the IRPF regime and the bilateral tax treaty.