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V1500-21 ·21 May 2021 ·consulta-vinculante Medium impact
Tax

Compensation for financial loss is not exempt and is taxed as a capital gain

A worker received compensation for civil liability after losing income due to a fire. The DGT has ruled that, as it pertains to financial rather than personal damages, the income must be taxed as a capital gain and does not allow for the deduction of legal and solicitor fees.

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2021-05-21PublishedPublished 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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