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V1697-22 ·15 July 2022 ·consulta-vinculante Medium impact
Tax

Personal injury compensation received from a Public Administration is exempt from Personal Income Tax (IRPF)

An individual requested €5,000 in compensation from the City Council following a fall on a public road. The DGT has ruled that this amount is not subject to Personal Income Tax (IRPF), as it constitutes compensation for personal injury within the scope of state liability.

In 5 key points

How it affects those involved

This ruling clarifies that compensation for personal injury arising from state liability is not considered taxable income for Personal Income Tax purposes.

Lifecycle

2022-07-15PublishedPublished 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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