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V2470-24 9 December 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · mercado de divisas

Foreign exchange (FOREX) transactions classified as capital gains and losses for Personal Income Tax purposes

The applicant inquired whether their foreign exchange (FOREX) market operations could be classified as an economic activity. The Directorate General for Taxes (DGT) ruled that, as they do not arise from the conduct of an economic activity, they are considered capital gains and losses included in the savings tax base.

The question raised

1. Whether such operations can be categorized as an economic activity for the purposes of Personal Income Tax.

The DGT's ruling

Operations in the foreign exchange market (FOREX) involve an alteration to private assets that does not arise from the conduct of an economic activity. Therefore, they must be classified as capital gains and losses, determined by the difference between the acquisition and transfer values. These earnings are classified as savings income and are included in the savings tax base.

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