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V1817-19 15 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · responsabilidad civil contractual

Compensation for financial loss caused by a lawyer is taxed as a capital gain

A taxpayer received €6,288.20 in damages due to their lawyer's negligence. The DGT has ruled that this amount is not exempt and must be taxed under Personal Income Tax (IRPF).

The question raised

Impact on the settlement of Personal Income Tax (IRPF) of said compensation.

The DGT's ruling

Compensation for pecuniary damages arising from the contractual civil liability of a lawyer does not constitute an exemption for personal injury or dismissal. Therefore, it must be classified as a capital gain and included in the general taxable base. Its quantification shall be the amount of compensation established in the judicial ruling.

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