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V2615-20 31 July 2020 · SG de Tributos Criterion in force
IRPF · declaración informativa

Obligation to file informative declaration on loss of foreign property ownership

A taxpayer asks about the obligation to submit form 720 and the valuation following the donation of their share of a property in Mexico to their spouse. The DGT states that a declaration must be filed regarding the loss of ownership and explains how to determine the transmission value and exchange rate.

The question raised

Question raised: Filing of the Informative Return on Assets and Rights Abroad, as well as its valuation.

The DGT's ruling

An obligation to file an informative return exists when ownership of real estate abroad is lost during the year. In this case, the percentage of participation and the transfer value must be recorded. For transfers by way of gratuitous title, the value shall be that resulting from the application of the rules of the Inheritance and Gift Tax, without exceeding the market value. The applicable exchange rate shall be that determined by the European Central Bank as of December 31.

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