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V0013-22 ·4 January 2022 ·consulta-vinculante Medium impact
Tax

Refund of advance payments is not a capital gain, while compensatory interest is taxed as such

A taxpayer inquired about the tax treatment of a refund received following a court ruling after a developer failed to complete a property construction. The Directorate General for Taxes (DGT) clarified that the refund of the principal does not constitute a capital gain, but compensatory interest and the award of legal costs may have tax implications.

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2022-01-04PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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