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V0172-18 29 January 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · condición resolutoria

Resolution of a sale with a penalty clause generates a capital gain taxed as general income

A taxpayer sold a property subject to a resolutory condition that allowed them to retain the amounts paid in the event of default. Following the judicial resolution of the contract, the question arises as to how those received amounts should be taxed.

The question raised

Impact of the termination of the contract on Personal Income Tax.

The DGT's ruling

The termination of the contract has retroactive effects, whereby the original sale is nullified and the amounts retained under the penalty clause constitute a capital gain. This gain is attributed to the period in which the judgment becomes final and is quantified by the amount of the indemnity. As it does not derive from a transfer, it must be included in the general tax base as general income. To exclude the gain from the original sale, the taxpayer must request the rectification of their tax returns.

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