A property swap (permuta inmobiliaria) is the contract by which each party gives one property in order to receive another (Article 1538 of the Civil Code): you swap a flat for a house without going through two sales. Otherwise, it is governed by the rules on sale and purchase.
Difference in value and taxes
The difference is usually made up with money. Unless the parties intended otherwise, it is a swap if the property handed over is worth more than the money; if not, it is a sale and purchase (Article 1446 of the Civil Code). For tax purposes, each party sells what they hand over and buys what they receive: check the ITP and AJD in your region.
The most common types of swap
Swapping homes between private individuals: a house for a flat, a flat for a villa or an apartment for another home.
Swapping a plot for future construction (permuta de solar por obra futura): the owner of a building plot hands it to a developer in exchange for flats or commercial premises in the future building.
Swapping building plots or parcels of land, or a house for a parcel of land.
What the swap contract must include
The parties and the properties (cadastral reference and Land Registry details), their value and the compensation.
Charges and how they are cancelled, handover dates and who pays each cost.
For a plot for future construction: the flats, deadlines and guarantees (registered termination condition or bank guarantee).
Risks to bear in mind
If you lose the property you received because it didn’t belong to the other party (evicción), you can recover yours as long as it is still in their hands, without harming third parties acting in good faith, or claim damages (Article 1540). Formalise it in a public deed, register it and complete the change of ownership at the Cadastre (Catastro) and for the annual property tax (IBI).
Taxes
The three taxes on a swap
Each party is taxed on what they receive and on what they hand over.
01
ITP
Transfer tax (ITP): each party to the swap pays it.
Which property it is paid on
On the property they receive.
Bear in mind
If a developer or a company is involved, VAT (IVA) and stamp duty (AJD) may apply.
02
IRPF
Personal income tax (IRPF): each party declares the capital gain or loss.
Which property it is paid on
On what they hand over.
Bear in mind
The higher market value counts: the one handed over or the one received.
03
Plusvalía municipal
Municipal capital gains tax: each party to the swap pays it.
Which property it is paid on
On the urban property they transfer.
Bear in mind
It is paid if the value of the land has increased.
Which properties are being exchanged and whether there is a difference in value.
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Frequently asked questions
Questions about property swaps
Can a flat be swapped for a house between private individuals?
Yes. It is a swap (permuta) and it is formalised like any transfer: contract, deed before a notary, taxes and registration at the Land Registry (Registro de la Propiedad).
What happens if the two properties aren't worth the same?
Whoever receives the more expensive property makes up the difference in money. If the money exceeds the value of the property handed over, the transaction is treated, in principle, as a sale and purchase.
Who pays the taxes on a swap?
Each party pays transfer tax (ITP), or VAT (IVA) if a company is involved, on what they receive, declares the gain on what they hand over in their personal income tax (IRPF) and, where applicable, pays plusvalía municipal.
What is a swap of a plot for future construction?
The owner of a building plot hands it to a developer in exchange for homes or commercial premises in the building that will be built. It is worth protecting it with guarantees in case the work isn't finished.
Can I swap a home with a mortgage?
Yes, but you have to decide whether the mortgage is paid off beforehand or taken on by whoever receives the property, which requires the bank's consent. The contract must make this clear.
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