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

Before commenting on 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, to express their valuation in euros for the purposes of the Wealth Tax, the following particular rules must be taken into account, where applicable:

1. Assets whose valuation rules take into account the acquisition value.

In the case of assets whose price, consideration or acquisition value is originally denominated in a currency other than the euro and is one of said magnitudes by which they 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 Member States of the European Union that have adopted the euro, depending on the official exchange rate of the euro corresponding to the date of accrual of the Tax published by the European Central Bank or, failing that, the latest previously published official exchange rate. 

   See the Resolution of December 30, 2022, of the Bank of Spain, which publishes the euro changes corresponding to December 30, 2022, published by the European Central Bank, which will be considered official changes, in accordance with the provisions of article 36 of Law 46/1998, of December 17, on the Introduction of the Euro ( BOE 12-31-2023). 

   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 that adopted the euro, based on the irrevocably fixed conversion rates between the euro and the currency in question contained in the Regulation ( EC ) number 2866/98 of the Council, of December 31, 1998 ( TWELVE of 12/31/98), taking into account for its conversion and rounding the rules established by the Regulation ( EC ) No. 1103/97, of the Council, of June 17, 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, they must be declared in this Tax for the equivalent value in euros of the price, consideration or acquisition value, determined in accordance with what is indicated in rule 1 above.

3. Account deposits in currencies other than the euro.

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

For these purposes, the calculation of the average balance will be carried out in the currency in question, in accordance with the provisions of article 12 of the Wealth Tax Law, and its equivalent value in euros will then be determined in accordance with rule 1.

Regarding article 12 of the Wealth Tax Law, see the section " Deposits in current or savings accounts, demand or time deposits, financial accounts and other types of account deposits " within the section "Formation of gross assets: rules for valuing assets and rights" of this same Chapter.

4. Securities traded on organized markets located abroad.

There is no definition of “organized market” in Spanish tax regulations or financial regulations relating to negotiable securities.

However, in the financial field, those markets in which there is a set of rules and regulations that determine their operation are usually known as “organized markets.”

From this perspective, the concept of “organized market” is broader than that of “official secondary market” or “regulated market” referred to in article 43, sections 1 and 2, of the consolidated text of the Securities Market Law. , approved by Royal Legislative Decree 4/2015, of October 23 ( BOE of October 24), since, when it comes to shares or participations in entities, it also includes the called “multilateral negotiation systems”, as markets endowed with self-regulation that establishes their structure and operating system.

Regarding multilateral negotiation systems, their definition must be sought in article 4.1.21) of Directive 2014/65/ EU , of the European Parliament and of the Council, of May 15 of 2014 relating to financial instrument markets, which provides:

“22) «multilateral negotiating system» (MNT): multilateral system, operated by an investment services company or by a market governing body, which makes it possible to bring together—within the system and according to non-discretionary rules—the various purchasing and selling interests in financial instruments of multiple third parties to give rise to contracts, in accordance with title II of this Directive.”

In accordance with the above, it can be stated that the concept of “organized markets” referred to in article 15 of Law 19/1991 is broader than that of the official secondary market or regulated market and includes the so-called “multilateral trading systems”. ".

This is also evident from the inclusion in the Order that annually approves the list of traded securities with their average trading value corresponding to the fourth quarter, by virtue of the provisions of articles 13 and 15 of the Wealth Tax Law, both of shares that are traded on the Spanish stock market, as well as shares that are traded on the Alternative Stock Market (Spanish multilateral trading system). In the explanatory memorandum of these orders, an equivalence is established between “organized markets” and “trading centers.”

Based on the above, the concept “organized markets” is broader than that of the official secondary market or regulated market (the Stock Exchanges) and includes the multilateral trading systems where securities are traded, and for these purposes the regulations must be taken into account. that is applicable in the foreign place where the securities representing the participation in own funds are located.

5. Securities representative of the participation in the own funds of foreign entities, not traded on organized markets.

In the case of shares and participations in the share capital or equity of any type of foreign entity, not traded on organized Spanish markets, to determine the value resulting from capitalizing at the rate of 20% the average of the profits of the three fiscal years closed prior to the date of accrual of the Tax, the average of said benefits will be calculated in the corresponding currency, and their equivalent value in euros will then be determined in accordance with what is indicated in rule 1.