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V0207-24 26 February 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · institución de inversión colectiva

Calculating capital gains or losses on foreign currency funds using exchange rates from acquisition and redemption dates

A taxpayer inquired about determining the income from the final redemption of fund units denominated in US dollars following a tax-deferred transfer. The Directorate General for Taxes (DGT) ruled that the gain or loss must be calculated by converting both the acquisition value and the redemption value into euros using the exchange rates applicable on their respective dates.

The question raised

1st. How the income (capital gain or loss) arising from the final redemption operation of the units in the collective investment institution should be determined in accordance with the description of facts previously set forth.

The DGT's ruling

For funds denominated in a currency other than the euro, the capital gain or loss is determined by the difference between the acquisition value in euros (using the exchange rate on the date of acquisition) and the redemption value in euros (using the exchange rate on the date of redemption). If the initial acquisition was made with previously acquired foreign currency, the exchange rate differences between the purchase of that currency and the acquisition of the fund are imputed as a capital gain or loss in the savings tax base. The currency obtained upon redemption is considered received at the exchange rate applied to determine its value in euros.

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