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Practical Heritage Manual 2019.

Previous issue: rules for the valuation of assets acquired, located or deposited abroad

Before entering into a discussion of each of the legally established valuation criteria, it is advisable to point out, as a preliminary matter, the rules that must be used to proceed with the valuation of assets acquired, located or deposited abroad.

In the case of assets acquired, located or deposited abroad, in order to express their valuation in euros for the purposes of the Wealth Tax, the following specific rules must be taken into account, where applicable:

  1. Assets whose valuation rules are based on acquisition value.

    In the case of assets whose price, consideration or acquisition value is originally expressed in a currency other than the euro and one of these amounts must be computed for the purposes of this tax, the equivalent value in euros must be determined:

    1. In the case of currencies other than those of the States of the European Union that have adopted the euro, based on the official euro exchange rate corresponding to the date of accrual of the Tax published by the European Central Bank or, failing that, the last official exchange rate published previously. (1)

      If there is no official exchange rate, the market value of the monetary unit in question will be taken as a reference.

    2. In the case of currencies of the Member States of the European Union which have adopted the euro, according to the conversion rates irrevocably fixed between the euro and the currency in question contained in Council Regulation ( EC ) No 2866/98 of 31 December 1998 ( OJEC of 31/12/98), taking into account for conversion and rounding the rules laid down in Council Regulation ( EC ) No 1103/97 of 17 June on certain provisions relating to the introduction of the euro.

  2. Valuation of real estate located abroad .

    In the case of real estate located abroad, the equivalent in euros of the price, consideration or acquisition value, determined in accordance with the provisions of rule 1 above, must be declared for this tax.

  3. Deposits into accounts in currencies other than the euro.

    Deposits in current or savings accounts, whether demand or term, will be computed by the balance they show on the date of accrual of the tax, unless the former is lower than the average balance corresponding to the last quarter of the year, in which case the latter will be applied.

    For these purposes, the average balance will be calculated in the currency in question, in accordance with the provisions of article 12 of Law 19/1991, of June 6, on the Wealth Tax, and its equivalent in euros will then be determined in accordance with rule 1.

  4. Securities traded on organised markets located abroad.

    When the Tax Law refers to "organized markets" it must be understood that these are exclusively the organized markets regulated in Royal Legislative Decree 4/2015, of October 23, which approves the consolidated text of the Securities Market Law ( BOE of the 24th). Therefore, securities traded on organised markets located abroad shall be valued, for the purposes of this tax, in accordance with the rules established for securities not admitted to trading, taking into account the provisions of the following rule in the event that they are securities representing participation in the share capital or equity of entities.

  5. Securities representing participation in the equity of foreign entities, not traded on organised markets.

    In the case of shares and interests in the share capital or equity of any type of foreign entity, not traded on Spanish organised markets, in order to determine the value resulting from capitalising at a rate of 20% the average of the profits of the three financial years closed prior to the tax accrual date, the average of said profits will be calculated in the corresponding currency, then determining its equivalent in euros in accordance with the provisions of rule 1.

(1) See the Resolution of December 31, 2019, of the Bank of Spain, which publishes the exchange rates of the euro corresponding to December 31, 2019, published by the European Central Bank, which will be considered official exchange rates, in accordance with the provisions of article 36 of Law 46/1998, of December 17, on the Introduction of the Euro ( BOE 03-01-2020). (Back)