7.6.6.4. Section F4: Capital gains from change of residence outside Spanish territory

The positive differences between the market value of the shares or holdings of any type of entity owned by the taxpayer and their acquisition value will be considered as capital gains when the following requirements are met:

Taxpayers who lose such status due to a change of residence, and are holders of shares or interests, even if they have not sold or transferred them, provided that said taxpayer had such status for at least ten of the fifteen tax periods prior to the last tax period that must be declared for this tax.

In the case of workers who have opted for the special tax system applicable to workers posted in Spanish territory, the ten-year period will start to be counted from the first tax period in which the special system is not applied.
That, in addition, any of the following circumstances occur:
1. That the market value of shares or stakes jointly exceeds 4,000,000 euros.
2. When the above is not met, that on the accrual date of the last tax period to be declared for this tax, the percentage of participation in the entity is greater than 25% provided that the market value of the shares or interests in the aforementioned entity referred to in section 3 of this article exceeds 1,000,000 euros.
  
  In this case, the special system will only apply to the capital gains corresponding to the shares or holdings referred to in this circumstance.

Market value of shares and participating interests

For the calculation of the capital gain, the market value of the shares or interests on the accrual date of the last tax period to be declared for this tax will be taken, determined in accordance with the following rules:

Securities admitted to trading on any of the regulated securities markets defined in Directive 2014/65/EU of the European Parliament and of the Council, of May 15, 2014, relating to markets in financial instruments, and representative of participation in own funds of companies or entities, will be valued by their price.
Securities not admitted to trading on any of the regulated securities markets defined in Directive 2014/65/EU of the European Parliament and of the Council, of May 15, 2014, relating to markets in financial instruments, and representative of participation in own funds of companies or entities, will be valued, unless there is proof of a different market value, by the higher of the following two:
1. The net equity corresponding to the resulting values from the balance sheet for the last year closed prior to the tax accrual date.
2. The result of capitalizing at a rate of 20% the average of the results of the three fiscal years closed prior to the date of accrual of the Tax.
  
  For this last purpose, dividends distributed and allocations to reserves, excluding those of regularisation or updating balance sheets, will be counted as profits.
Shares or units representing the capital or assets of collective investment institutions shall be valued at the applicable net asset value on the accrual date of the last tax period to be declared for this tax or, failing that, at the last published net asset value.

When there is no settlement value, the net equity value corresponding to stocks or shares resulting from the balance sheet for the last tax year closed prior to that accrual date, unless proof of a different market value is obtained.

Temporary attribution and tax return and deposit

Capital gains must be included in the tax base corresponding to the last period to be declared for this tax, and a supplementary self-assessment must be made, without penalty or late payment interest or any surcharge, within the period for filing the tax return corresponding to the first year in which the taxpayer loses the status of taxpayer.

Specialties for change of residence to other states of the European Union

If the transfer is to another EU or EEA Member State, you may choose to apply the capital gains in one of these ways:
1. The capital gain will only have to be an object of self-assessment when within the ten tax years following the last one to be declared for this tax one or more of the following circumstances occur:
  1. That shares or interests be transmitted inter vivos.
  2. That the taxpayer loses the status of resident in a Member State of the European Union or the European Economic Area.
  3. That the communication obligation referred to in letter c) of this section is not fulfilled.
    
    The capital gain shall be attributed to the last tax period to be declared for this tax and, where applicable, a supplementary self-assessment shall be made, without penalty or interest for late payment or any surcharge.
2. In the event that the shares or holdings referred to in number 1 a) above are transferred inter vivos within the ten financial years following the change of residence, the amount of the capital gain shall be reduced by the positive difference between the market value of the shares or holdings and their transfer value.
  
  For these purposes, the transfer value shall be increased by the amount of the profits distributed or of any other payments that have led to a reduction in the net worth of the entity after the loss of taxpayer status, unless such payments have been subject to non-resident income tax.
3. The taxpayer must notify the tax authorities of the option to apply the special provisions referred to in the previous paragraphs, the capital gain disclosed, the State to which he/she is transferring his/her residence, indicating the address and any subsequent changes, and the continued ownership of the shares or holdings.
4. If the ten-year period elapses without any of the circumstances referred to in point (a) of this paragraph having arisen, no self-assessment of the gain shall be required.
Change of residence to a country or territory considered a non-cooperative jurisdiction
When the change of residence occurs to a country or territory considered a non-cooperative jurisdiction and the taxpayer does not lose his status according to article 8.2 of the Personal Income Tax Law, the following special provisions will apply:

Capital gains will be imputed to the last tax period in which the taxpayer has his habitual residence in Spanish territory , and for their calculation the market value of the shares or interests on the accrual date of said tax period will be taken.
In the event that shares or interests are transferred in a tax period in which the taxpayer maintains such condition , for the calculation of the capital gain or loss corresponding to the transfer, the market value of the shares or interests that would have been taken into account to determine the capital gain provided for in this article will be taken as the acquisition value.

In the case of taxpayers who have opted for the special tax system applicable to workers posted to Spanish territory, the period of ten tax periods shall begin to run from the first tax period in which the aforementioned special system does not apply.

Completion of F4