Doctrine by topic · DGT Observatory

Legal Interest Rate on Money: DGT doctrinal evolution

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

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Refined position High confidence 8 rulings · 2016–2025

Current position

Loans or advances on future wages granted at an interest rate lower than the legal interest rate constitute benefits in kind for Personal Income Tax (IRPF). The valuation of such income is the difference between the current legal interest rate and the interest actually paid by the employee. If the applied interest rate is equal to the legal interest rate, there is no benefit in kind.

The DGT's position has moved from valuing loans based on the difference from the market price (V1572-16) to systematically applying the difference from the legal interest rate. Since 2018, the doctrine has stabilized on the use of the legal interest rate as the valuation basis for loans and advances on future wages. The most recent rulings confirm this valuation criterion based on the legal interest rate.

Turning points

  1. V1572-16

    Established that valuation would not be based on the difference from the legal interest rate, but rather on the difference from the price offered to the public for a loan of the same nature.

  2. V1292-18

    Changes the valuation criterion toward the difference between the interest paid and the legal interest rate.

Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8
V0781-25 5 May 2025

A zero-interest advance to an employee may constitute a species retribution

SG de Impuestos sobre la Renta de las Personas Físicas
retribución en especieanticipo reintegrableinterés legal del dinerorendimientos del trabajovaloración de rentas LIRPF — Ley 35/2006 del IRPF art. 17.1LIRPF — Ley 35/2006 del IRPF art. 29.1
Affects CompanyExpat · Non-residentIndividual
V3088-23 24 Nov 2023

No benefit-in-kind if company loan interest equals the legal interest rate

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajorentas en especieinterés legal del dinerovaloración de rentaspréstamo laboral LIRPF — Ley 35/2006 del IRPF art. 17.1LIRPF — Ley 35/2006 del IRPF art. 42.1
Affects CompanyExpat · Non-residentIndividual
V1423-21 14 May 2021

No benefit-in-kind exists if the housing loan applies the legal interest rate

SG de Impuestos sobre la Renta de las Personas Físicas
rentas en especierendimientos del trabajointerés legal del dinerovaloración de rentaspréstamo para vivienda LIRPF — Ley 35/2006 del IRPF art. 17.1LIRPF — Ley 35/2006 del IRPF art. 42.1
Affects CompanyExpat · Non-residentIndividual

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