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V2958-15 7 October 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · intereses de demora

Late payment interest from expropriation is taxed as capital gains in the savings tax base

A query is made regarding the taxation of late payment interest received following the payment of an expropriation fair price. The DGT determines that, due to their compensatory nature, they are not income from movable capital but capital gains.

The question raised

Taxation of late payment interest.

The DGT's ruling

Late payment interest has a compensatory purpose to redress damages caused by non-compliance or delay, and therefore is taxed as capital gains pursuant to Articles 25 and 33.1 of Law 35/2006. The change in assets occurs when the interest is recognized, quantified, and its payment is agreed upon. Regardless of the period they cover, this interest must be included in the savings tax base in accordance with Article 49.1,b) of the Tax Law.

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