Skip to main content
Practical Heritage Manual 2019.

Goods or rights acquired with deferred payment

Regulations: Art. 8.One Wealth Tax Law

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

Example

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

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

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

Solution

Statement by Mr. PPJ (buyer):

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

Statement by Mr. AHM (seller):

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