Doctrine by topic · DGT Observatory

Property Damages: 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 49 rulings · 2014–2024

Current position

Compensations for civil liability that offset property or material damages do not benefit from the exemption for personal damages under article 7.d) of the IRPF (Personal Income Tax) Law. As they do not involve physical, psychic, or moral damages, these amounts are classified as capital gains. According to the most recent doctrine, as they do not derive from the transfer of assets, they must be included in the general tax base.

The DGT's position has remained constant since 2014, systematically rejecting the exemption for damages that are not personal. The evolution shows a consolidation in the classification of these compensations as capital gains. The latest ruling specifies that, as it is not a transfer of assets, the integration must be carried out in the general tax base.

Turning points

  1. V0701-24

    Specifies that, as it does not derive from a transfer of assets, the compensation is considered general income and is included in the general tax base.

Analysis based on 49 of 49 rulings with a stated position. Updated 20 September 2026.

Rulings on this topic

24
V0701-24 16 Apr 2024

Compensation for delay in pension scheme transfer taxed as capital gain

SG de Impuestos sobre la Renta de las Personas Físicas
indemnizacióndaños patrimonialesganancia patrimonialrenta generalplan de pensiones LIRPF — Ley 35/2006 del IRPF art. 7.dLIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual
V3545-20 11 Dec 2020

Inheritance Tax is not a capital loss, but may increase the acquisition value

SG de Impuestos sobre la Renta de las Personas Físicas
ganancias y pérdidas patrimonialesvalor de adquisiciónimpuesto sobre sucesiones y donacionesindemnización por responsabilidad civildaños patrimoniales LIRPF — Ley 35/2006 del IRPF art. 7.dLIRPF — Ley 35/2006 del IRPF art. 33
Affects CompanyExpat · Non-residentIndividual
V3041-19 29 Oct 2019

30% reduction applicable to income with a generation period exceeding two years

SG de Impuestos sobre la Renta de las Personas Físicas
imputación temporalrendimientos del trabajodaños patrimonialesperíodo de generaciónreducción por irregularidad LIRPF — Ley 35/2006 del IRPF art. 14LIRPF — Ley 35/2006 del IRPF art. 17.1
Affects CompanyExpat · Non-residentIndividual
V1817-19 15 Jul 2019

Compensation for financial loss caused by a lawyer is taxed as a capital gain

SG de Impuestos sobre la Renta de las Personas Físicas
responsabilidad civil contractualdaños patrimonialesganancia patrimonialbase imponible generalrentas exentas LIRPF — Ley 35/2006 del IRPF art. 7.dLIRPF — Ley 35/2006 del IRPF art. 7.e
Affects CompanyExpat · Non-residentIndividual
V1335-19 10 Jun 2019

Compensation for professional negligence by a lawyer is taxed as a capital gain

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialresponsabilidad civil contractualdaños patrimonialesrentas exentasbase imponible general LIRPF — Ley 35/2006 del IRPF art. 7.d)LIRPF — Ley 35/2006 del IRPF art. 7.e)
Affects CompanyExpat · Non-residentIndividual

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