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V0521-14 ·25 February 2014 ·consulta-vinculante Medium impact
Tax

Personal injury compensation is exempt from Income Tax if the amount is legally or judicially recognised

A taxpayer has enquired whether the reimbursement of residence and rehabilitation expenses, along with compensation for injuries following an accident, is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that the exemption applies provided the damages are personal and the amount is recognised by law or a court ruling.

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2014-02-25PublishedPublished 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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