Skip to content
Back to index
V1025-22 6 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de propietarios

No capital gains tax applies if compensation received by a homeowners' association matches repair costs

A property owner inquired about the tax treatment of a portion of a €140,000 compensation payment received from their homeowners' association following a lawsuit against a builder. The Directorate General for Taxes (DGT) ruled that the compensation is attributed to the co-owner as a capital gain or loss.

The question raised

Question posed: Tax treatment in the Personal Income Tax (IRPF) of the distributed compensation.

The DGT's ruling

The compensation received by the community of owners is attributed to the co-owners as a capital gain or loss. If the amount of the compensation coincides with the cost of the repairs carried out, no capital gain or loss occurs. A change in net wealth will only occur when there is no equivalence between the compensation and the cost of the repair.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Email
Contact