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V2243-23 ·27 July 2023 ·consulta-vinculante Medium impact
Tax

Compensation for non-pecuniary damages may be exempt from Personal Income Tax if agreed upon through a judicial settlement

A taxpayer asks whether the compensation for non-pecuniary damages received by their homeowners' association and the compensation for the transfer of land are exempt from Personal Income Tax. The DGT responds that non-pecuniary damages are exempt if they pertain to personal injury and their amount is judicially recognized, whereas the transfer of use is classified as income from real estate capital.

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2023-07-27PublishedPublished 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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