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V3264-17 ·21 December 2017 ·consulta-vinculante Medium impact
Tax

Legal costs awarded as damages are considered capital losses; loan interest for payment is non-deductible

A taxpayer has enquired about the Personal Income Tax (IRPF) implications of being ordered to pay legal costs and the interest on a loan taken out to cover them. The Directorate General of Taxes (DGT) has ruled that such an award constitutes a capital loss, but the interest on the loan has no tax implications.

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2017-12-21PublishedPublished 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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