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V1817-19 ·15 July 2019 ·consulta-vinculante Medium impact
Tax

Compensation for financial loss caused by a lawyer is taxed as a capital gain

A taxpayer received €6,288.20 in damages due to their lawyer's negligence. The DGT has ruled that this amount is not exempt and must be taxed under Personal Income Tax (IRPF).

In 6 key points

How it affects those involved

This ruling clarifies that compensation for purely economic losses, rather than non-material damages, is subject to taxation as a capital gain.

Lifecycle

2019-07-15PublishedPublished 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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