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V0890-25 23 May 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por daños y perjuicios

Damages compensation is not exempt in IRPF and is taxed as patrimonial gain

A taxpayer received 100,000 euros from a judicial agreement following the theft of a camper van, split into a refund of amounts paid and a damages payment. The DGT states that the refund is not taxable and that the economic damages compensation must be taxed as patrimonial income.

The question raised

Exemption in the 2024 Personal Income Tax (IRPF) on the amount received.

The DGT's ruling

The refund of amounts paid for the purchase does not generate a capital gain or loss as the amounts are identical. Compensation for damages is not exempt under Article 7.d) of the Personal Income Tax Law (LIRPF) because it does not compensate for personal damages (physical, psychological, or moral), but rather for economic losses. As it is not an exemption, the compensation is classified as a capital gain pursuant to Article 33.1 of the Personal Income Tax Law. Its quantification shall be the monetary amount received in accordance with Article 34.1.b).

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