Skip to content
Back to index
V2117-23 19 July 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización

Permanent disability compensation received from a club is not exempt from Personal Income Tax (IRPF)

A football player inquired whether the total permanent disability compensation received from his club, pursuant to Royal Decree 1006/1985 and his collective bargaining agreement, was exempt. The DGT responds that it is not exempt under civil liability or insurance, but it does qualify as employment income with a reduction for irregularity.

The question raised

Question posed: Taxation in the Personal Income Tax (IRPF) of the compensation.

The DGT's ruling

The compensation received from the club is not covered by the exemption for civil liability nor by the exemption for accident insurance. As they are not exempt income, they are considered employment income. Therefore, the 30 percent reduction is applicable as they are obtained in a notoriously irregular manner over time.

Email
Contact