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V1088-26 ·18 May 2026 ·consulta-vinculante Medium impact
Tax

Remuneration for contract expiry is not exempt from IRPF

The DGT confirms that compensation received at the end of a fixed-term contract due to expiry is subject to income tax, as it does not constitute a dismissal or termination.

In 5 key points

How it affects those involved

Employers must include such compensation in taxable income, as it is not considered a dismissal-related payment.

Lifecycle

2026-05-18PublishedPublished 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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