Skip to content
Back to index
V1529-24 21 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Settlement interest from insurance company taxed as capital gain in the general tax base

A taxpayer received a settlement from an insurance company following the failure of a housing cooperative. The Tax Agency has determined that while the return of capital does not generate a gain or loss, the interest received constitutes a capital gain that must be taxed within the general tax base.

The question raised

Calculation of the possible capital gain or loss derived from the amount received by the taxpayer due to the agreement reached with the insurer, as well as the possibility of reducing the fees of the lawyer and the court representative from said gain or loss.

The DGT's ruling

The refund of the amounts contributed does not constitute a change in net worth as the amounts are identical. The interest received, being compensatory in nature, constitutes a capital gain that does not derive from a transfer. Therefore, it cannot be reduced by legal or court representative fees and must be included in the general taxable base, following the doctrine of the Supreme Court.

Book your free first meeting