A contract of exchange involves two parties transferring property to each other. If the properties exchanged differ in value, the parties may agree that the one receiving the higher value compensates the other, either in money or in kind. If the monetary part exceeds the value of the property transferred, the contract is deemed a sale rather than an exchange.
All exchanges of immovable property such as land, buildings, and airspace must be formalised by virtue of a public deed. Although certain fiscal exemptions may apply, generally each party pays tax on the property they are transferring, while duty is calculated on the higher-valued property and split equally between both parties.
