Doctrine by topic · DGT Observatory

Compensation for Civil Liability: 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 10 rulings · 2019–2025

Current position

Compensation for personal damages (physical, psychological, or moral) and their late payment interest are exempt. Compensation for material or financial damages, as well as interest on these, are taxed as capital gains. In the event of the disappearance of an asset, the compensation constitutes a change in net worth that is included in the general tax base.

The DGT's position remains constant in the distinction between personal damages, which enjoy an exemption, and material or financial damages, which are taxed. The most recent rulings specify the treatment of compensation following the disappearance of real estate as a change in net worth included in the general tax base.

Turning points

  1. V0889-25

    Establishes that compensation for the disappearance of real estate is a change in net worth according to article 33.1 of Law 35/2006, being included in the general tax base.

Analysis based on 10 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10
V0914-25 26 May 2025

Civil liability indemnity from unlawful property sale taxed as patrimonial gain

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por responsabilidad civilganancia patrimonialvariación patrimonialbase imponible generalcaudal relicto LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 37.1.g
Affects CompanyExpat · Non-residentIndividual
V0889-25 23 May 2025

Civil liability compensation taxed as patrimonial gain or loss

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por responsabilidad civilganancia patrimonialvariación patrimonialbase imponible generalvalor de adquisición LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 37.1.g
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
V0233-19 5 Feb 2019

Civil liability indemnity not to be included in annual declaration of third-party transactions

SG de Tributos
declaración anual de operaciones con terceras personasindemnización por responsabilidad civilcontraprestaciónbase imponibleobligación de facturar RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 31.1RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 33.1
Affects CompanyExpat · Non-residentIndividual

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