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V1902-25 15 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

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 question raised

Taxation of the transaction under Personal Income Tax.

The DGT's ruling

The sale of real estate located in Uruguay allows for taxation in both Uruguay and Spain according to the Spanish-Uruguayan Convention. As a resident in Spain, the taxpayer must declare the transaction in the Personal Income Tax (IRPF), determining the capital gain or loss through the difference between the acquisition and transfer values. If no taxes were paid in Uruguay because the sale resulted in a loss, the deduction for international double taxation shall not apply.

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