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V3329-20 11 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Sale of shares in a foreign company generates capital gains or losses in personal income tax

A resident taxpayer in Spain asks how to declare investments in a Mexican company upon possible sale. The DGT explains how to calculate capital gains or losses and the reporting obligations regarding foreign assets.

The question raised

To ascertain how to report to the Tax Administration the amounts invested outside of Spain (in Mexico), particularly in view of whether the investment is sold.

The DGT's ruling

The sale of unlisted shares generates a capital gain or loss based on the difference between the acquisition value and the transfer value. For values not admitted to trading, the transfer value may not be lower than the higher of: the net equity value according to the latest balance sheet or the result of capitalizing the average of the three previous fiscal years at 20%. Regarding information on assets abroad, an informative declaration must be submitted if the limits established in the RGAT are exceeded.

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