Doctrine by topic · DGT Observatory

Procedural Costs: 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

Refined position High confidence 31 rulings · 2014–2026

Current position

The payment of procedural costs by the prevailing party constitutes a loss of assets by altering the composition of the assets and not being a consumption expense. This loss must be imputed to the tax period in which the judgment becomes final and is integrated into the general tax base. However, if the claim is filed in the course of an economic activity, the costs are considered an expense of said activity, imputable upon accrual.

The DGT's position has remained constant in qualifying costs as a loss of assets imputable upon the finality of the judgment. The only relevant change occurs when the condemnation derives from an economic activity, at which point it ceases to be treated as a loss of assets and is instead integrated as an expense of the activity.

Turning points

  1. V0568-25

    Establishes that costs derived from a claim in the course of an economic activity must be considered an expense of said activity and not a loss of assets.

Analysis based on 30 of 31 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V1588-26 15 Jun 2026

Costs paid after a final civil judgment can be treated as a capital loss

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialcostas procesalessentencia firmealteración patrimonialbase imponible general LIRPF — Ley 35/2006 del IRPF art. 14.1.cLIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual
V1225-25 4 Jul 2025

Renters' repair damages and legal costs are taxable losses

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialresponsabilidad civilcostas procesalesalteración patrimonialbase imponible general LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.5
Affects CompanyExpat · Non-residentIndividual
V0568-25 31 Mar 2025

Costs from legal actions in economic activity deemed business expenses

SG de Impuestos sobre la Renta de las Personas Físicas
estimación directacostas procesalesrendimiento netogasto de la actividaddevengo LIRPF — Ley 35/2006 del IRPF art. 14.1.bLIRPF — Ley 35/2006 del IRPF art. 28.1
Affects CompanyExpat · Non-residentIndividual
V1010-20 22 Apr 2020

Proceeds from legal actions of UK residents taxed solely in UK

SG de Fiscalidad Internacional
costas procesalesganancia patrimonialresidencia fiscalconvenio de doble imposiciónotras rentas TRLIRNR — RDLeg 5/2004 del IRNR art. 13.1.i.4Convenio España-Reino Unido
Affects CompanyExpat · Non-residentIndividual
V1425-19 13 Jun 2019

Recovery of legal costs constitutes a capital gain for the prevailing party

SG de Impuestos sobre la Renta de las Personas Físicas
costas procesalesganancia patrimonialcarácter restitutoriobase imponible generalsentencia firme LIRPF — Ley 35/2006 del IRPF art. 14.1LIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual

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