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V3340-20 11 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · permuta

Exchanging a plot of land for a future construction is taxed as a capital gain or loss for Personal Income Tax

A query was made regarding the taxation of an exchange of land for a property to be built in the future. The DGT ruled that, provided the individual is not acting as a developer, the transaction generates a capital gain or loss that must be included in the savings tax base.

The question raised

Taxation in the Personal Income Tax (IRPF) of the exchange operation.

The DGT's ruling

The exchange of land for a future construction constitutes an asset alteration that results in a capital gain or loss. The transfer value shall be the higher of the market value of the land provided and the market value of the dwelling received. The taxpayer may opt to impute the income proportionally as the payments become due, provided that the requirements for installment transactions are met. The gain or loss shall be included in the savings tax base.

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