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V0914-25 26 May 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por responsabilidad civil

Civil liability indemnity from unlawful property sale taxed as patrimonial gain

An heir asks whether an indemnity received after a conciliation process for the unlawful sale of a deceased ancestor's property is taxable in ISD or IRPF. The DGT confirms it is not taxable in ISD and must be taxed in IRPF as a patrimonial gain.

The question raised

It is asked whether the compensation received is taxed under the Inheritance and Gift Tax (ISD) or the Personal Income Tax (IRPF).

The DGT's ruling

Since the sale of the property to a third party is valid, the civil liability compensation constitutes a change in assets due to the disappearance of the asset. The difference between the amount received and the proportional part of the acquisition value of the property shall be calculated as a capital gain or loss. As it does not derive from a transfer of assets, this change is integrated into the general taxable base of the Personal Income Tax (IRPF).

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