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V0706-22 1 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Stock trading commissions increase acquisition value or decrease disposal value

A taxpayer has enquired whether currency exchange commissions and expenses incurred when trading US shares are deductible for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) has ruled that trading commissions are inherent expenses that affect the acquisition and disposal values, whereas portfolio maintenance costs are deductible as income from movable capital.

The question raised

Whether such expenses are deductible in the Personal Income Tax (IRPF) return.

The DGT's ruling

The acquisition value includes the expenses and taxes inherent to the purchase, whereas the transfer value deducts the expenses inherent to the sale. Share purchase and sale commissions are considered inherent expenses that meet this condition. Portfolio maintenance expenses do not count towards capital gains or losses, but are deductible from income from movable capital. In foreign currency transactions, the calculation of the gain or loss must be carried out in the currency of the shares and then converted into euros.

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