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V1168-25 1 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · daños morales

Judicial damages compensation from public administration is exempt from IRPF

A taxpayer asks whether judicial compensation for moral damages arising from a public council's violation of fundamental rights is exempt from IRPF. The DGT responds that such compensation is an exempt income as it constitutes personal damage reimbursement.

The question raised

It is asked whether said compensation is exempt from Personal Income Tax (IRPF).

The DGT's ruling

Compensation for non-pecuniary damages judicially established by a Public Administration is considered covered by the exemptions under Article 7 of Law 35/2006. Although the procedure for the protection of fundamental rights is not strictly that regulated in letter q) of said article, the patrimonial liability of Administrations is a derivation of extra-contractual civil liability. Therefore, as it constitutes reparation for personal damages, its exemption from Personal Income Tax (IRPF) is applicable.

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