2. Assets and rights affected by economic activities

Regulations: Art. 11 Wealth Tax Law

Assets and rights related to economic, business or professional activities may be exempt from tax if the owner of the same meets the requirements established for this purpose and which are discussed in the section corresponding to “Exemptions” within “business and professional assets” of this same Chapter.

However, whether or not they are exempt, they must be declared using the following valuation rules:

• Valuation rules for economic activities with accounting adjusted to the Commercial Code

  The assets and rights of natural persons affected by the exercise of business or professional activities according to the rules of IRPF , except for real estate, will be computed at the value resulting from their accounting by difference between real assets and payable liabilities , provided that the accounting complies with the provisions of the Commercial Code.

• Valuation rules for economic activities without accounting adjusted to the Commercial Code

  In this case, the valuation of the affected assets and rights will be carried out, element by element , applying the valuation rules of the Wealth Tax that correspond to the nature of each element.

• Special case: valuation of properties affected by economic activities

  Regardless of whether or not accounting is kept in accordance with the Commercial Code, the value of each of the real estate assets affected by the economic, business or professional activities carried out by its owner will be determined by applying the valuation rules indicated for real estate in section 1 above, unless they form part of the current assets of business activities whose purpose consists exclusively of real estate construction or development, in which case said assets will be valued using the rules discussed in this section.

  Note: In the case of marriage, whether the assets or rights related to economic, business or professional activities are the exclusive property of the spouse who carries out the activity or, in accordance with the provisions or agreements regulating the corresponding matrimonial economic regime, are common to both spouses, the valuation of the same will be carried out by applying the rules discussed in this section. In this last case, the value thus determined will be attributed equally in the Wealth Tax declaration of each of them, unless a different share of participation is justified.

  If the activity involves the use of assets or rights (premises, machinery, etc.) that belong exclusively to the spouse who does not carry out the activity, the latter will include them in full in his or her declaration, valuing them in accordance with the rules contained in the tax regulations for unaffected assets and rights that are included in the remaining sections of this section.