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V0158-19 ·25 January 2019 ·consulta-vinculante Medium impact
Tax

Insurance compensation for total vehicle loss does not constitute a capital gain for Income Tax purposes

A taxpayer inquired whether a €4,176.56 compensation payment received following the total loss of their vehicle should be subject to Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that there is no change in the value of the taxpayer's assets because the compensation serves to offset the loss suffered.

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2019-01-25PublishedPublished 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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