Doctrine by topic · DGT Observatory

Economic Compensation: 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 32 rulings · 2014–2025

Current position

Economic compensations due to work or due to the termination of the separation of assets regime do not constitute income for the recipient, nor do they allow for a reduction of the payer's taxable base. In the case of compensations for excessive working hours, these are classified as employment income. Finally, compensations to amateur players are considered employment income as they derive from personal services, with no possibility of applying exemptions for per diems.

The DGT's position remains constant in the distinction between compensatory pensions and economic compensations due to the termination of an economic regime or due to work, which have no tax effects for IRPF (Personal Income Tax). The evolution shows a diversification of scenarios, moving from the termination of matrimonial regimes to the classification of labor and sports compensations.

Turning points

  1. V1436-15

    Establishes that monetary compensations for excessive working hours are classified as employment income according to article 17 of the IRPF Law.

  2. V2401-22

    Determines that the cash supplement in the dissolution of a condominium constitutes the transfer of a right, leaving the operation subject to IVA (VAT).

Analysis based on 31 of 32 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V1875-20 10 Jun 2020

Post-contractual non-compete compensation is attributed when it becomes due

SG de Impuestos sobre la Renta de las Personas Físicas
imputación temporalrendimientos del trabajopacto de no competencia poscontractualexigibilidadcompensación económica LIRPF — Ley 35/2006 del IRPF art. 14.1Estatuto de los Trabajadores RDL 2/2015
Affects CompanyExpat · Non-residentIndividual
V2736-19 8 Oct 2019

30% reduction not applicable to post-contractual non-compete compensation

SG de Impuestos sobre la Renta de las Personas Físicas
pacto de no competencia poscontractualreducción por irregularidadperíodo de generaciónrendimientos del trabajocompensación económica LIRPF — Ley 35/2006 del IRPF art. 18.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12.1
Affects CompanyExpat · Non-residentIndividual

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