Compensation from the Church's Comprehensive Reparation Plan is exempt from Personal Income Tax

The Directorate General of Taxes (DGT) has issued a ruling on the tax nature of economic compensation intended for the reparation of victims of sexual abuse suffered in ecclesiastical institutions. The analysis focuses on determining whether these incomes should be included in the taxable base of Personal Income Tax (IRPF).

What the DGT has resolved

The tax administration has determined that the amounts paid by the Catholic Church to victims of sexual abuse are exempt from taxation under IRPF. This criterion is based on the system provided for in the Agreement of January 8, 2026, and its corresponding application Protocol.

The resolution clarifies that the exemption is not limited solely to the framework of the aforementioned Agreement, but also extends to amounts paid in accordance with the Catholic Church's own internal reparation systems and plans. Consequently, the amounts received within the framework of the Comprehensive Reparation Plan for Victims of Abuse (PRIVA) do not constitute income for the beneficiary for tax purposes.

What this means for you

For individuals who are beneficiaries of these compensations, the operational consequence is the absence of a tax burden on the capital received. Being exempt, these amounts will not increase the taxpayer's taxable base, which prevents the receipt of the compensation from potentially raising the tax rate applicable to the individual's other income.

What you should do

Since this is a matter of exemption under specific regulations, it is necessary for the beneficiary to keep all documentation proving the origin of the amount received. It is essential to have the receipt from the paying entity stating that the payment is made within the framework of the Comprehensive Reparation Plan or the Agreement of January 8, 2026, in order to justify the non-inclusion of said amount in the tax return in the event of a potential audit by the Administration.