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Practical Income Manual 2022.

General scheme

Specific valuation standard

In cases of exchange of assets or rights, including the exchange of securities, the capital gain or loss will be determined by the difference between the acquisition value of the asset or right that is transferred and the greater of the following two :

  • The market value of the good or right delivered.

  • The market value of the good or right that is received in exchange.

Special case: exchange of land for flats or premises to be built on the same

In this case, the capital gain or loss of the owner of the land will occur at the moment in which it is transferred and will be determined by applying the previously mentioned rule.

Once the capital gain or loss obtained has been determined, the taxpayer may choose to pay taxes in the tax period in which the capital alteration takes place (transfer of the land) or to allocate it proportionally as the buildings are delivered or, where appropriate, receives cash payments, provided that there is more than one year between the transfer of the land and the delivery of the buildings or the cash, by application of the special rule of temporal allocation of installment operations or with deferred payment.

Goods or rights delivered acquired before December 31, 1994

In this case, if a capital gain is obtained, the part of the capital gain that was generated prior to January 20, 2006 (the only one to which the reduction or reduction coefficients are applicable) must be distinguished from that generated later. to that date on which the reduction or abatement coefficients are not applicable.

The determination of the capital gain generated prior to January 20, 2006 and the application, where applicable, of the reducing coefficients will be carried out in accordance with the distribution rules discussed herein Chapter.


Don AOP On June 25, 2022, he transferred a plot of land he owned in exchange for an apartment for his own use that will be delivered in the month of October 2023 and whose market value is estimated to amount to 600,000 euros in that year.

The lot transmitted was acquired by Mr. AOP by inheritance on January 10, 1989, increasing the administratively verified value for the purposes of the Inheritance and Donation Tax in said year to an amount equivalent to 100,000 euros. The market value of the plot on the date of transfer amounted to 600,000 euros.

Since January 1, 2015, the taxpayer has not made a transfer of assets to whose gain the ninth transitional provision of the Personal Income Tax Law would be applicable.

Determine the capital gain or loss obtained by Mr. AOP and completing your personal income tax return for fiscal year 2022, knowing that the taxpayer has chosen to allocate the capital gain to fiscal year 2022 in which the apartment will be delivered.


1. Determination of the capital gain or loss obtained by Mr. AOP 

  1. Market value of the apartment to receive: 600,000

    Market value of the lot delivered: 600,000

  2. Acquisition value of the plot that is transferred: 100,000

  3. Capital gain (600,000 - 100,000) = 500,000

2. Determination of the capital gain generated before 01-20-2006 (1):

Reducible capital gain (500,000 ÷ 12,219) x 6,219 = 254,480.73 

3. Reduction calculation:

  1. Profit generated prior to 01-20-2006 subject to reduction (2)

    Maximum limit: 400,000

    ∑ Transfer value of assets with the right to reduction since 01-01-2015: 0

    Transfer value of the asset element to which DT9 Law of Personal Income Tax applies: 400,000

    Capital gain subject to reduction (254,480.73 x 400,000) ÷ 600,000 = 169,653.82 

  2. Applicable reduction

    Number of years of stay until 12-31-1996: up to 8 years

    Reduction due to abatement coefficients (66.66% x 169,653.82) = 113,091.24 

  3. Reduced capital gain

    Reduced capital gain: (254,480.73 – 113,091.24) = 141,389.49

4. Determination of non-reducible capital gain (generated as of 01-20-2006):

Non-reducible capital gain: (500,000 – 254,480.73) = 245,519.27

5. Computable capital gain (141,389.49 + 245,519.27) = 386,908.76

6. Capital gain attributable to 2022: 0 (3)

Notes to the example:

(1) The determination of this part of the gain is carried out in proportion to the number of days elapsed between the date of acquisition (01-10-1989) and 01-19-2006, inclusive, which amounts to 6,219 days, with respect to the total number of days elapsed between the date of acquisition and the date of transfer (06-25-2022), which is 12,219 days. (Back)

(2) Although the value of the transmission is 600,000 euros, the maximum limit is 400,000 euros. Therefore, the part of the profit generated before 01-20-2006 that corresponds proportionally to a transmission value of 400,000 euros is susceptible to reduction. In the next transfer that is made, even if the asset was acquired by the taxpayer before December 31, 1994, the reductions of the ninth transitional provision of the Personal Income Tax Law will not be able to apply. (Back)

(3) Since the taxpayer has chosen to allocate the capital gain obtained in 2022 to the year in which he receives the agreed consideration (delivery of an apartment for own use) 2023 , it will be in this year when he must make the tax imputation of the entire of the capital gain obtained and recorded in the 2022 personal income tax return. (Back)