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V2026-20 19 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of foreign property in non-euro currency generates capital gain or loss

A Spanish resident sold a property in Switzerland denominated in Swiss francs and sought guidance on how to calculate the capital gain and the subsequent conversion of part of the funds into euros. The tax authority responded that the gain is calculated in Swiss francs and converted into euros at the exchange rate on the date of sale, and that the later conversion of foreign currency may give rise to another capital gain or loss.

The question raised

Taxation of the sale, taking into account that part of the amount received has been transferred to Spain and converted into euros.

The DGT's ruling

The capital gain or loss is determined by the difference between the acquisition and transfer values in Swiss francs, converting the result into euros according to the exchange rate on the date of the transaction. On the other hand, the conversion of the received foreign currencies into euros generates a capital gain or loss due to the difference between the transfer and acquisition value of the currencies, attributable at the time of the actual exchange if euros are received.

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