Skip to content
Back to index
V0329-19 15 February 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · intereses de demora

Late payment interest from expropriation taxed as capital gains in the deceased's final tax period

An heir asks how late payment interest received following the expropriation of a farm owned by their deceased father is taxed. The DGT rules that these interests constitute capital gains which must be attributed to the tax year of the deceased's death.

The question raised

Taxation under Personal Income Tax.

The DGT's ruling

Late payment interest due to expropriation is compensatory in nature and must be taxed as capital gains, rather than as income from movable capital. These gains are attributed to the person who generated the right, in this case the deceased, and must be included in their final tax period. The heir shall be taxed on said right through Inheritance and Gift Tax.

Book your free first meeting