Doctrine by topic · DGT Observatory

Objective Dismissal: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Settled doctrine High confidence 17 rulings · 2014–2026

Current position

The severance pay for objective dismissal is exempt up to the lesser of two limits: the mandatory amount for unfair dismissal according to the Workers' Statute and a cap of 180,000 euros. The excess over these limits is taxed as employment income. The 30% reduction for irregularity may be applied if the requirements of the LIRPF (Personal Income Tax Law) are met.

The DGT's position has moved from focusing solely on the limits of the Workers' Statute (V0107-14) to systematically integrating the 180,000 euro cap (V0881-17). Subsequently, the application of the irregularity reduction and the consideration of seniority within corporate groups has been clarified (V3078-21). The doctrine remains constant regarding the application of these combined limits.

Turning points

  1. V0881-17

    Introduces the maximum limit of 180,000 euros for the exemption, in addition to the amount set by the Workers' Statute.

  2. V3078-21

    Clarifies that in corporate groups, the number of years of service provided to the group as an employer must be considered for the calculation of the exemption.

Analysis based on 17 of 17 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

17
V1835-25 13 Oct 2025

Exemption applies to severance pay up to wrongful dismissal limit

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidodespido objetivodespido improcedenteexenciónrendimiento del trabajo LIRPF — Ley 35/2006 del IRPF art. 7.eLIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

Beckham Law & impatriate taxationTalk to the team applying this doctrine daily.
IRPF Spain 2026 CalculatorEstimate the impact on your case in two minutes.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact