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V3318-20 6 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Repayment of housing advances is non-taxable, while compensatory interest is treated as capital gains

A taxpayer inquired about the taxation of a refund of funds paid to a developer, along with interest and legal costs following a court ruling. The Tax Agency clarified that the repayment of the principal does not generate a gain, whereas compensatory interest and legal costs are subject to specific tax treatments.

The question raised

Taxation under Personal Income Tax (IRPF).

The DGT's ruling

The refund of amounts contributed for a dwelling does not constitute a capital gain or loss as there is no change in net worth. Compensatory interest is taxed as capital gains included in the savings tax base. Regarding legal costs, the prevailing party may deduct the expenses incurred from the amount received, such that if the compensation covers the expenses, there is no capital gain.

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