Doctrine by topic · DGT Observatory

Conciliation Act: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 20 rulings · 2014–2026

Current position

The exemption of severance pay requires that the recognition of unfair dismissal occurs through a judicial ruling or during a conciliation act before the SMAC. If these mechanisms are not met, the amount is taxed as employment income, although the 30% reduction from article 18.2 of the LIRPF (Personal Income Tax Law) could apply. Likewise, providing services for the same company or a related company in the following three years presumes the non-existence of a real severance of the employment relationship.

The DGT's position remains constant regarding the requirement of a conciliation act or judicial ruling for the exemption of severance pay. Throughout the rulings, the limits of the exemption for senior management and the possibility of applying reductions for employment income have been specified. The latest ruling introduces a presumption of the non-existence of severance in the event of re-hiring within a three-year period.

Turning points

  1. V2509-18

    Specifies that in senior management relationships, the entirety of the severance pay is taxed as there are no mandatory maximum limits.

  2. V0912-26

    Establishes the presumption of the non-existence of a real severance if services are provided to the same company or a related company in the three years following the dismissal.

Analysis based on 20 of 20 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

20
V0912-26 24 Apr 2026

New hiring within three years after dismissal presumes no real separation

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidoexencióndesvinculación real y efectivapresunción de no desvinculaciónempresas vinculadas LIRPF — Ley 35/2006 del IRPF art. 7.eRIRPF — RD 439/2007, Reglamento del IRPF art. 1
Affects CompanyExpat · Non-residentIndividual

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