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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A resident in Spain inquired whether compensation received from the Scottish Government for abuse suffered at a school is exempt from Income Tax (IRPF) or if it can be treated as irregular income. The Directorate General for Taxes (DGT) ruled that it is not exempt as it fails to meet procedural requirements, and no reduction applies because it is classified as a capital gain.
The ruling clarifies that compensation for personal injury only qualifies for tax exemption if it follows specific administrative liability procedures; otherwise, it is taxed as a capital gain.
The tax team reviews your specific situation.
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