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V1328-25 15 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas

Personal injury damages and delay interest exempt from IRPF

A person asks whether compensation for violation of their trade union freedom and interest penalties are exempt from IRPF. The DGT responds that both the compensation and interest are exempt as they relate to civil liability for personal injury.

The question raised

Taxation of the compensation received by the applicant under Personal Income Tax.

The DGT's ruling

Compensations for civil liability for personal injury, in the amount legally or judicially recognized, are exempt income pursuant to Article 7.d) of the Personal Income Tax Law. Compensatory interest for the delay in the payment of an exempt compensation is also covered by said exemption. In this case, the amount judicially recognized by judgment meets the requirements for the exemption.

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