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V3551-20 14 December 2020 · SG de Tributos Criterion in force
IRPF · declaración informativa

Declaration of foreign assets required upon loss of ownership

The consultant asks about the obligation to submit a declaration of foreign assets after a sale and the taxation of the gain. The DGT states that loss of ownership triggers the submission of the declaration regardless of amount, and that gains are taxed in Spain as worldwide income.

The DGT's ruling

The obligation to report assets held abroad extends to anyone who has been a holder at any time during the year and has lost such status as of December 31. In this case, filing is mandatory due to the termination of ownership, regardless of the sale amount. If the loss of ownership results from a full reinvestment, only the balances as of December 31 shall be declared. Regarding Personal Income Tax (IRPF), residents in Spain are taxed on their worldwide income, including capital gains abroad.

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