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Practical Heritage Manual 2019.

Goods or rights acquired with a deferred price

Regulations: Art. 8.One Wealth Tax Law

In the acquisition of goods or rights with deferred consideration, in whole or in part, the value of the asset element resulting from the rules of this tax will be fully attributed to the acquirer of the same , who will include among its debts the part of the deferred consideration. For its part, the seller will include among the rights of its assets the credit corresponding to the part of the deferred consideration.

Example

Don AHM sells to don PPJ a premises for 120,000 euros, receiving 70,000 euros in cash, which is invested in shares admitted to trading, and the rest being deferred.

The average trading value in the fourth quarter of the year of the shares acquired by Mr. AHM amounts to 65,500 euros.

Determine the declaration of the buyer and seller of the aforementioned premises.

Solution

Statement from Don PPJ (buyer):

  • Other urban properties (the acquired premises): 120,000
  • Deductible debts (the debt with Mr. AHM): – 50,000

Statement from Don AHM (seller):

  • Shares admitted to trading: 65,500
  • Other assets and rights (the credit against Mr. PPJ): 50,000