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V2290-19 5 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Interest on housing contribution refunds is taxed as a capital gain

A member of a housing cooperative has requested clarification on the taxation of interest received following a court ruling ordering the refund of her contributions. The Directorate General for Taxes (DGT) has responded that while the refund of the principal does not generate a gain or loss, the interest received is subject to taxation.

The question raised

Taxation of interest.

The DGT's ruling

The refund of the amounts contributed does not constitute a capital gain or loss as there is no variation in the net worth. The interest received is compensatory in nature due to the breach of contract, and therefore is taxed as a capital gain and not as income from movable capital. Legal fees cannot be deducted from said gain. The temporal imputation is made in the tax period in which the judgment becomes final.

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