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V0342-23 ·20 February 2023 ·consulta-vinculante Medium impact
Tax

30% reduction for income generated over more than two years may apply if not habitual

A lawyer has enquired whether legal fees recovered as court costs in proceedings lasting more than two years qualify for the reduction for irregular income. The Directorate General for Taxes (DGT) indicates this is possible provided they are attributed to a single period and such income is not obtained on a regular or habitual basis.

In 6 key points

How it affects those involved

This ruling provides clarity for professionals whose income from specific legal processes may be spread over multiple years, potentially allowing for tax relief under the irregularity reduction criteria.

Lifecycle

2023-02-20PublishedPublished 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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