Doctrine by topic · DGT Observatory

Debt forgiveness: evolution of DGT doctrine

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 38 rulings · 2018–2025

Current position

The agreed debt forgiveness intended to extinguish a debt generates a capital loss for the amount not collected. As it derives from the extinction of a credit right, this loss must be included in the general taxable base pursuant to Article 45 of the IRPF Law (Personal Income Tax Law). It is not considered a transfer of assets.

The DGT's position remains constant in requiring that the lack of payment does not automatically generate the loss. Throughout the rulings, it has been reiterated that the imputation requires the effectiveness of a debt forgiveness or the conclusion of insolvency proceedings. The doctrine is uniform regarding the nature of the loss as a reduction of a credit right.

Analysis based on 38 of 38 rulings with a stated position. Updated 14 August 2026.

Rulings on this topic

24
V0027-26 9 Jan 2026

Non-payment of a credit does not automatically result in a patrimonial loss

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialderecho de créditoincobrabilidad judicialprocedimiento concursalimputación temporal LIRPF — Ley 35/2006 del IRPF art. 14.2.kLIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual
V2141-25 12 Nov 2025

Loss from debt cancellation treated as general income

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialquitaderecho de créditorenta generalbase imponible general LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 45
Affects CompanyExpat · Non-residentIndividual
V2392-24 25 Nov 2024

Exemption from compensation limit for negative taxable bases in IS

SG de Impuestos sobre las Personas Jurídicas
bases imponibles negativasquitaacuerdo transaccionalhomologación judiciallímite compensación BINs LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V0931-24 25 Apr 2024

Income from debt forgiveness excluded from negative tax base offset limits

SG de Impuestos sobre las Personas Jurídicas
quitabases imponibles negativascompensación de basespasivo financieroremisión de deuda LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.3
Affects CompanyExpat · Non-residentIndividual
V2119-23 19 Jul 2023

No automatic loss of capital on credit default unless IRPF law conditions met

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialderecho de créditoconcurso de acreedoresimputación temporalbase imponible general LIRPF — Ley 35/2006 del IRPF art. 14.2.kLIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual
V1968-23 6 Jul 2023

Losses can be recognised on unsecured credits after insolvency procedure ends

SG de Impuestos sobre la Renta de las Personas Físicas
pérdidas patrimonialescréditos no cobradosprocedimiento concursalimputación temporalbase imponible general LIRPF — Ley 35/2006 del IRPF art. 14.2.kLIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual
V1552-23 6 Jun 2023

Losses on unpaid Forum Philatelic credits can be claimed in 2022 tax return

SG de Impuestos sobre la Renta de las Personas Físicas
pérdidas patrimonialescrédito vencidoprocedimiento concursalimputación temporalbase imponible general LIRPF — Ley 35/2006 del IRPF art. 14.2.kLIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual
V1426-23 25 May 2023

Loss can be recognised on a non-collected loan after insolvency conclusion

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialderecho de créditoprocedimiento concursalimputación temporalbase imponible general LIRPF — Ley 35/2006 del IRPF art. 14.2.kLIRPF — Ley 35/2006 del IRPF art. 33.1
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