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V1653-18 12 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas

Court-ordered compensation for violation of fundamental rights is exempt from Personal Income Tax

An individual received compensation of €27,001 following a court ruling that declared a violation of their fundamental rights. A query was raised regarding whether this amount should be subject to Personal Income Tax (IRPF).

The question raised

Taxation of compensation under Personal Income Tax.

The DGT's ruling

Compensations for civil liability for personal injury, in the amount legally or judicially recognized, are exempt pursuant to Article 7.d) of the Personal Income Tax Law. As the amount is judicially recognized by judgment, the compensation for damages resulting from the violation of fundamental rights constitutes exempt income.

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