Skip to content
Back to index
V0666-24 15 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cláusula multidivisa

Refunds due to invalid multi-currency clauses are non-taxable, but interest and legal costs are

A taxpayer inquired about the tax treatment of amounts received following a court ruling that invalidated the multi-currency clause in their mortgage. The Directorate General for Taxes (DGT) ruled that the principal amount refunded is not considered income; however, statutory interest is treated as general income, and legal costs may constitute a capital gain after deducting incurred expenses.

The question raised

Taxation in Personal Income Tax (IRPF): possible consideration of the three concepts as capital gains.

The DGT's ruling

The restitution of overpaid amounts due to the nullity of a clause does not constitute income. Legal interest, being compensatory in nature, is taxed as a capital gain integrated into the general tax base. Regarding legal costs, they are considered a capital gain, but the prevailing party may deduct the expenses incurred in the litigation from the amount received.

Book your free first meeting