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MEDIUM
FISCAL

Only moral damages are exempt from IRPF; lost profits are taxed as work income

V1195-25

Prepared and reviewed by the BMC editorial team  ·  Methodology

Technical details

Type
consulta-vinculante (what is this?)
Identifier
V1195-25
Published
2 Jul 2025

Summary

The consultant asks about the taxation of a judicial indemnity including lost profits and moral damages. Hacienda responds that only moral damages are exempt, while lost profits must be taxed as work income.

In 6 key points

Lifecycle

2025-07-02PublishedPublished 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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