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V2481-17 3 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Legal and solicitor fees cannot be treated as capital losses for Income Tax purposes

A taxpayer inquired whether legal defence costs incurred in criminal proceedings could be classified as a capital loss. The Directorate General of Taxes (DGT) ruled that they cannot, as these are considered consumption expenses.

The question raised

Consideration of lawyer and solicitor expenses as a capital loss.

The DGT's ruling

The payment of lawyer and solicitor fees is configured as a consumption expense of the taxpayer. As it constitutes a provision of services, it does not constitute a variation in the value of the assets that may be computed as a capital loss pursuant to Article 33.1 and 33.5.b) of Law 35/2006.

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