Doctrine by topic · DGT Observatory

Income from Consumption: 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 34 rulings · 2014–2025

Current position

Personal expenses classified as income from consumption are not deductible, even if they are intended to be linked to economic activity. For an expense to be admissible, it must be linked to the generation of income and comply with the requirements of registration, justification, and correlation with income. Procedural expenses, or those related to lawyers or solicitors in cases of compensation or divorces, are considered income from consumption and do not count as capital losses.

The DGT's position remains constant in classifying certain expenses as income from consumption. There is a reiteration in the exclusion of lawyer and solicitor fees, as well as personal expenses (such as contact lenses or clothing), from the taxable base. The doctrine has not changed, but has instead been systematically applied to various scenarios such as compensation, divorces, or business expenses.

Analysis based on 31 of 34 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V2120-25 11 Nov 2025

Contact lenses cannot be deducted if used for personal purposes

SG de Impuestos sobre la Renta de las Personas Físicas
rendimiento netoactividades económicascorrelación con los ingresosestimación directagastos deducibles LIRPF — Ley 35/2006 del IRPF art. 28.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3
Affects CompanyExpat · Non-residentIndividual
V0779-25 5 May 2025

Real estate commission for a failed purchase not a patrimonial loss

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialarras penitencialesrenta al consumointermediación inmobiliariaganancias y pérdidas patrimoniales LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.5
Affects CompanyExpat · Non-residentIndividual
V2546-24 11 Dec 2024

Private contact lenses do not appear to be deductible as a business expense

SG de Impuestos sobre la Renta de las Personas Físicas
rendimiento netoestimación directacorrelación con los ingresosgasto deduciblerenta al consumo LIRPF — Ley 35/2006 del IRPF art. 28.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3
Affects CompanyExpat · Non-residentIndividual
V0772-22 11 Apr 2022

Compensation for economic damages and interest are taxed as capital gains

SG de Impuestos sobre la Renta de las Personas Físicas
ganancias patrimonialesbase imponible generalbase imponible del ahorrointereses indemnizatoriosimputación temporal LIRPF — Ley 35/2006 del IRPF art. 14.1LIRPF — Ley 35/2006 del IRPF art. 14.2
Affects CompanyExpat · Non-residentIndividual
V0543-22 18 Mar 2022

Judicial indemnity classified as patrimonial gain, no deductions allowed

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialindemnizaciónpérdida patrimonialrenta al consumoresidencia fiscal LIRPF — Ley 35/2006 del IRPF art. 14.1LIRPF — Ley 35/2006 del IRPF art. 33
Affects CompanyExpat · Non-residentIndividual
V0183-21 4 Feb 2021

Legal and solicitor fees cannot be deducted from compensation received

SG de Impuestos sobre la Renta de las Personas Físicas
ganancias y pérdidas patrimonialesindemnizacióngastos de abogado y procuradorrenta al consumoacuerdo extrajudicial LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 33.1
Affects CompanyExpat · Non-residentIndividual
V1263-19 4 Jun 2019

Property damage and legal or expert fees cannot be deducted as capital losses

SG de Impuestos sobre la Renta de las Personas Físicas
ganancias y pérdidas patrimonialesdaños materialeshonorarios profesionalesrenta al consumoalteración de la composición del patrimonio LIRPF — Ley 35/2006 del IRPF art. 7.qLIRPF — Ley 35/2006 del IRPF art. 31.1
Affects CompanyExpat · Non-residentIndividual
V0592-19 20 Mar 2019

Legal costs arising from contract nullity cannot be treated as capital losses

SG de Tributación de las Operaciones Financieras
ganancias y pérdidas patrimonialesrenta al consumogastos judicialesnulidad de contratoobligaciones subordinadas LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.5.b
Affects CompanyExpat · Non-residentIndividual
V2012-18 5 Jul 2018

Vehicle repair costs cannot be treated as capital losses

SG de Impuestos sobre la Renta de las Personas Físicas
ganancias y pérdidas patrimonialesrenta al consumoprestación de serviciosvariaciones en el valor del patrimonio LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.5.b)
Affects CompanyExpat · Non-residentIndividual

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