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V3356-14 22 December 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Compensation and bond sale taxed as patrimonial gain and capital gain in Spain

A Spanish resident received compensation from the Argentine government for forced exile and subsequently sold the bonds received. The DGT classifies the compensation as a patrimonial gain under the general tax base and the bond sale as a capital gain under the savings base.

The question raised

Whether said compensation is subject to taxation under Personal Income Tax and, if so, whether it must be included in the general tax base or the savings tax base.

The DGT's ruling

The compensation received constitutes a capital gain that must be included in the general tax base. On the other hand, the income derived from the disposal of the bonds is classified as income from movable capital, being included in the savings tax base. The final treatment will depend on the classification of the income in Argentina according to the Double Taxation Convention.

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