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V1225-25 4 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pérdida patrimonial

Renters' repair damages and legal costs are taxable losses

A taxpayer asks whether a court-ordered payment for property damage in a rental and legal fees can be deducted. The DGT responds that both constitute deductible patrimonial losses.

The question raised

Consideration of the amount to be paid for damages as a loss of wealth.

The DGT's ruling

The obligation to indemnify for civil liability entails an alteration in the composition of assets that results in a loss of wealth. Likewise, the payment of legal costs outside of an economic activity is also considered a loss of wealth. These losses must be imputed in the tax period in which the judicial sentence becomes final. Their integration shall be carried out in the general taxable base following the compensation limits set forth in Article 48 of the Personal Income Tax Law.

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