Doctrine by topic · DGT Observatory

Repair Cost: 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 12 rulings · 2016–2023

Current position

No capital gain or loss is computed if the compensation received coincides with the cost of repairs, including VAT. A change in net wealth only occurs if the amount exceeds said cost or if it is not allocated to the repair. In the case of public subsidies, the excess over the repair cost is included in the taxable base.

The DGT's position has remained constant since 2016, focusing on the equivalence between compensation and repair cost to avoid capital gains. The most recent rulings specify that the cost must include VAT and extend the criterion to the application of public subsidies for repairing damages.

Turning points

  1. V0335-23

    Specifies that the equivalence to avoid computing a gain must consider the cost of repairs with VAT included.

  2. V0568-23

    Applies the criterion to public subsidies, establishing that only the excess over the repair cost is included in the taxable base.

Analysis based on 11 of 12 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

12
V0335-23 20 Feb 2023

No capital gains tax on IRPF if compensation received matches repair costs

SG de Impuestos sobre la Renta de las Personas Físicas
ganancias y pérdidas patrimonialesindemnizaciónvalor de adquisicióncoste de reparaciónperíodo impositivo LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 37.1.g
Affects CompanyExpat · Non-residentIndividual
V1250-19 3 Jun 2019

No capital gains tax applies if insurance payouts match repair costs

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialpérdida patrimonialindemnizaciónsiniestrovalor de adquisición LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 37.1.g
Affects CompanyExpat · Non-residentIndividual
V0854-17 6 Apr 2017

No capital gains tax if insurance compensation matches repair costs

SG de Impuestos sobre la Renta de las Personas Físicas
ganancias y pérdidas patrimonialesindemnizaciónsiniestrovalor de adquisicióncoste de reparación LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 37.1.g
Affects CompanyExpat · Non-residentIndividual

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