Doctrine by topic · DGT Observatory

Conversion of Securities: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 8 rulings · 2014–2019

Current position

The conversion of securities (debt into shares) generates income from movable capital determined by the difference between the conversion value and the original acquisition value. If there is a payment for leftover fractional shares, this must be added to the income. In cases of immediate transfer without consideration, the operation is treated as a write-off that generates negative income.

The DGT's position remains constant in classifying the conversion as income from movable capital. Throughout the rulings, it has been specified that the conversion value must be the market value of the shares at the time of the exchange. No changes in criterion are observed, but rather a uniform application of the regulations regarding the difference between the acquisition value and the conversion value.

Turning points

  1. V3212-17

    Establishes that conversion for immediate transfer without consideration is considered a write-off, generating negative income due to the difference between the acquisition value and the write-off value of zero euros.

Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8
V3290-18 28 Dec 2018

Amount received from conversion of preferred shares deemed as capital gain

SG de Tributación de las Operaciones Financieras
rendimiento del capital mobiliariobase imponible del ahorroparticipaciones preferentesconversión de valoresvalor de adquisición Ley 13/1985LIRPF — Ley 35/2006 del IRPF art. 25.2
Affects CompanyExpat · Non-residentIndividual
V2858-15 5 Oct 2015

Conversion of bonds into shares generates income from movable capital

SG de Tributación de las Operaciones Financieras
rendimientos del capital mobiliarioobligaciones subordinadasconversión de valoresvalor de conversiónvalor de adquisición LIRPF — Ley 35/2006 del IRPF art. 25.2.b
Affects CompanyExpat · Non-residentIndividual
V2857-15 5 Oct 2015

Conversion of bonds into shares generates income from movable capital

SG de Tributación de las Operaciones Financieras
rendimientos del capital mobiliariobonos subordinadosconversión de valoresvalor de adquisiciónvalor de conversión LIRPF — Ley 35/2006 del IRPF art. 25.2.b
Affects CompanyExpat · Non-residentIndividual

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