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V1661-23 12 June 2023 · SG de Tributos Criterion in force
IRPF · promissory note

A personal credit right is neither a financial asset nor subject to foreign assets declaration

The consultant asks whether a foreign promissory note must be declared as a foreign asset and how it is taxed. The DGT determines that, as a personal and non-transferable right, it is neither a financial asset nor a representative of capital transfer, but does form part of net wealth.

The DGT's ruling

The 'promissory note' analyzed is a personal, non-transferable, and non-negotiable credit right, and therefore does not qualify as a financial asset under the Personal Income Tax Regulations. As it is not a security representing the transfer of equity, there is no obligation to file the informative return on assets held abroad. Nevertheless, the credit right constitutes net equity and must be taxed in the Wealth Tax at its market value.

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