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V0808-21 6 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Conversion to euros of capital gains or losses from real estate sales in foreign currency and subsequent currency exchange

A resident in Spain sells a property in Ukraine, with the transaction conducted in Ukrainian currency, and subsequently converts the funds into euros. The Directorate General for Taxes (DGT) clarifies that the capital gain must be calculated in the original currency and converted into euros using the exchange rate on the date of sale, and that the subsequent exchange of currency into euros generates a separate capital gain or loss.

The question raised

Question posed: Date and acquisition value for the purpose of determining the capital gain or loss in Personal Income Tax.

The DGT's ruling

The capital gain or loss arising from the transfer of real estate in foreign currency is determined by calculating the difference between the acquisition and transfer values in said currency, converting the result into euros at the exchange rate in force on the date of the transfer. Furthermore, the subsequent conversion of the received foreign currency into euros generates an additional capital gain or loss, attributable at the time the exchange is effectively carried out.

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