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V0522-22 14 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · gastos deducibles

Legal defence expenses may be deductible up to an annual limit of €300

A taxpayer inquired whether they could deduct legal fees incurred during a lawsuit against the INSS to claim their pension. The Directorate General of Taxes (DGT) ruled that these expenses are deductible, provided all legal requirements are met.

The question raised

Criteria for the deductibility of such legal fees in the Personal Income Tax (IRPF) returns for the 2021 and 2022 tax years.

The DGT's ruling

Legal defense expenses are deductible when they consist of fees for legal professionals defending the recipient of employment income in disputes with their payer. These expenses must be attributed to the tax period in which they become due, subject to an annual limit of 300 euros. This applies even if the litigation commenced in a previous tax year.

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