Doctrine by topic · DGT Observatory

Penalty Deposits: 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

Stable position High confidence 14 rulings · 2017–2026

Current position

Amounts received by the seller as penalty deposits (arras penitenciales) are classified as capital gains, as they do not derive from a transfer. This gain is included in the general taxable base and is attributed to the period in which the seller can proceed with its execution according to the contract. Conversely, the loss of deposits by the buyer constitutes a capital loss that is included in the general taxable base. The payment of real estate agency fees for a frustrated sale is considered consumption income and does not count as a capital loss.

The DGT's position remains stable regarding the classification of deposits as changes in equity that are included in the general taxable base. Consistency has been maintained in that mediation fees are not capital losses. The latest ruling introduces a technical distinction regarding the nature of deposits as an advance on the price versus the capital loss resulting from breach of contract.

Turning points

  1. V5388-26

    Establishes that the receipt of deposits is an advance on the price that only affects the transfer value if the sale is completed, distinguishing the excess due to breach of contract as a capital loss.

Analysis based on 14 of 14 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

14
V5388-26 28 Jul 2026

Receipts not capital gains; loss recognised upon loss of funds

SG de Impuestos sobre la Renta de las Personas Físicas
arras penitencialesganancia patrimonialpérdida patrimonialbase imponible generalimputación temporal LIRPF — Ley 35/2006 del IRPF art. 14.1LIRPF — Ley 35/2006 del IRPF art. 33
Affects CompanyExpat · Non-residentIndividual
V1567-26 15 Jun 2026

Fines received by seller incorporated into general taxable base as income

SG de Impuestos sobre la Renta de las Personas Físicas
arras penitencialesganancia patrimonialbase imponible generaltransmisiónalteración patrimonial LIRPF — Ley 35/2006 del IRPF art. 14.1 cLIRPF — Ley 35/2006 del IRPF art. 33
Affects CompanyExpat · Non-residentIndividual
V1284-26 25 May 2026

Capital gain from property sale is deemed upon registration of title

SG de Impuestos sobre la Renta de las Personas Físicas
imputación temporalganancia patrimonialvivienda habitualtransmisión de dominioexención por edad LIRPF — Ley 35/2006 del IRPF art. 14.1.cLIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual
V0779-25 5 May 2025

Real estate commission for a failed purchase not a patrimonial loss

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialarras penitencialesrenta al consumointermediación inmobiliariaganancias y pérdidas patrimoniales LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.5
Affects CompanyExpat · Non-residentIndividual
V1166-17 16 May 2017

Refund of earnest money is a capital loss, but real estate fees are not

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialarras penitencialesbase imponible generalrenta al consumorescisión de contrato LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.5
Affects CompanyExpat · Non-residentIndividual

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