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V3097-17 29 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas

Court-ordered compensation for violation of fundamental rights is exempt from Personal Income Tax (IRPF)

A query was raised regarding whether a €30,000 compensation payment for violations of rights to honour and data protection is subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that this amount is exempt, as it constitutes compensation for personal injury under civil liability recognised by a court.

The question raised

Taxation of the aforementioned compensation under the Personal Income Tax.

The DGT's ruling

Compensations for civil liability for personal injury, in the amount legally or judicially recognized, are exempt income. Compensation for damages caused by the violation of fundamental rights to honor and personal data protection is covered by the exemption in Article 7.d) of the Personal Income Tax Law, as it is an amount judicially recognized by court ruling.

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