A contract of exchange involves parties mutually transferring property to one another. If the properties being exchanged are not of equal value, the parties may agree that the party gaining the greater value compensates the other in money or in kind. However, any supplement in money may not exceed the value of the property being exchanged.
All exchanges of immovable property, such as land, buildings, and airspace, must be made by public deed. When the deed is being prepared, the parties are required to furnish the notary with certain documents. At the final stage, taxes and duties must be paid. Although certain fiscal exemptions might apply, in general, each party is liable to pay tax on the property they are transferring, while duty is calculated on the property of higher value and divided equally between the parties.
Ethan Brincat 