Interest from the nullity of mortgage clauses will be taxed as general income

The recovery of amounts due to the nullity of clauses in mortgage contracts generates various tax consequences that taxpayers must be aware of to avoid errors in their Personal Income Tax (IRPF) returns. The Directorate General of Taxes (DGT) has specified the differentiated treatment between the restituted principal and the interest generated by said delay.

What the DGT has resolved

The tax administration establishes that the restitution of the principal amounts due to the nullity of mortgage clauses does not constitute income for the taxpayer. However, this criterion entails an additional obligation: if the taxpayer previously applied said amounts as a deduction for investment in a primary residence, they must proceed to regularize that deduction in the corresponding tax return.

On the other hand, judicial or legal interest derived from the delay in the payment of these amounts is compensatory in nature. Following the doctrine of the Supreme Court, this interest must be taxed as a capital gain integrated into the general taxable base of the IRPF. The taxable event occurs at the moment these amounts are recognized, quantified, and their payment is agreed upon.

What this means for you

If you are an individual who has obtained financial compensation for abusive clauses in your mortgage, you should not include the principal amount of the refund as income in your tax return, as it is not income. However, the tax impact lies in two key points:

• Regularization of deductions: If you used those expenses to reduce your tax burden through the primary residence deduction, the recovered money must be reintegrated.
• Taxation of interest: The amount corresponding to legal or procedural interest must be declared as a capital gain in the general base.

What you should do

It is necessary to analyze the origin of the amounts received and verify whether tax deductions were applied in previous years related to those expenses. The correct determination of the tax period is fundamental, as the change in assets must be declared when the payment of interest is agreed upon. Given that each mortgage nullity situation has particularities in its quantification, it is necessary to assess each case individually to ensure compliance with current regulations.