Swap Agreement: Advantages and disadvantages

Swap contract












Really interesting signing a swap instead of a sale? What are their advantages and disadvantages?

The possibility of frequently raises a exchange of property (property, homes, Car) with the hope that it may lead to savings. The look is not using the money to economize. Is this really true?

The swap agreement, allows the exchange of goods, normally without any payment. It is the contract by which each of the parties undertakes to give one thing for another (art. 1.539 C.Civil). Sometimes paying a portion supported on metal, but as for calificarlos the transaction as swap agreement, must be be the manifest intention of the contracting, as stated in Article 1.446 Civil Code: so it is important that the wording of the contract clearly state whether it is a swap. The lack of express indication, consider swap if the value of the thing is greater than the portion paid in cash and vice versa for sale.

By swap agreement, the parties agree to:

  • Transfer ownership of objects.
  • Deliver the same.
  • Ensuring peaceful possession and respond latent defects and in case of eviction.
  • Pay expenses and taxes.

They are very frequent exchanges of solar for floors with many variants.

Tax Considerations

Let's see the tax issue on the common case of the swap contract for a solar homes.

As for VAT, occur two deliveries of goods. If both are liable (entrepreneurs), both must declare each taxable event the VAT.

If one of them is a particular, delivering this will be a taxable event for the Transfer Tax and Stamp Duty.

And the time of accrual, is the delivery of the solar: can not postpone the actual delivery of the consideration. The same day the Deed swap contract is an obligation to pay arises both ITP and VAT.

One should also take into account the Tax on the Increase in Value of Urban Land.

For other types of goods, should pay exactly the same taxes as if two separate sales should occur.

Housing swap contract

Sometimes swaps are made on homes and private. In the event that any is mortgaged, Contracting may be subrogated to the mortgage on the home you will receive in exchange. In these situations, While it is important to do the calculations to avoid imbalances. And the intervention of the financial institution will require.

Basic precautions

It is highly recommended that you check the Land Registry actual home ownership we will deliver, their characteristics and the presence of loads. Also worth checking that the other party has paid the property tax, requesting a receipt and is aware of the payment of fees the homeowners, consultation with the administrator of the estate.


With a swap agreement, no tax savings as both supplies of goods must fully comply with the payment of the same taxes as if carried two purchases.

However, the swap was born with Humanity, even before the money. With the lack of market liquidity, the swap can be a useful tool. The greatest difficulty may be finding their "half": get the fit between two people for a successful swap for both. However, this problem has been improved with the appearance of several specialized websites that provide this service.

In any case, is recommended that you seek expert advice.

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