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V0552-16 10 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del trabajo

Legal fees for claiming unpaid wages are deductible up to a €300 limit

A taxpayer inquired whether they could deduct employment lawyer fees in their 2015 tax return for claims regarding unpaid wages from 2011 and 2012. The Directorate General of Taxes (DGT) ruled that these expenses are deductible as legal defence costs.

The question raised

Possibility of deducting, in the income tax return corresponding to 2015, the amount paid to the attorney.

The DGT's ruling

An attorney's fees for claiming unpaid wages from a company constitute a legal defense expense arising from a dispute in the relationship with the person from whom the income is received. This expense is deductible pursuant to Article 19.2 e) of the LIRPF, with an annual limit of 300 euros, without the necessity of an existing lawsuit or judicial proceeding.

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