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V2954-15 ·7 October 2015 ·consulta-vinculante Medium impact
Tax

Compensation for failure to vacate is taxed as real estate income or capital gains depending on its nature

A joint ownership entity has requested a ruling on the taxation of compensation received for the restitution of a commercial premises following a breach of contract. The DGT has determined that the principal compensation constitutes real estate capital income, while the compensatory interest is classified as a capital gain, and neither is subject to VAT.

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Lifecycle

2015-10-07PublishedPublished 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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