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V0128-17 23 January 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por daños personales

Personal injury compensation is exempt, while property damage and default interest are taxable

A query was raised regarding whether compensation for a road traffic accident and its accrued interest are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has determined that only personal injury is exempt, whereas property damage and default interest are taxable as capital gains.

The question raised

Cuestión planteada Si están sujetos a IRPF o exentos, tanto la indemnización como los intereses que se perciba con motivo del accidente, y conforme a sentencia judicial.

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