Doctrine by topic · DGT Observatory

Contract Rescission: 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

Stable position Medium confidence 15 rulings · 2014–2024

Current position

The rescission of lease agreements requires the derecognition of tangible fixed assets (works) and the recognition of the difference between the carrying amount and the derecognition amount as a profit or loss in the fiscal year of the rescission. Regarding IVA (Value Added Tax), contractual resolution with debt forgiveness due to non-payment allows for a reduction of the taxable base pursuant to Article 80.Two of the IVA Law. Rescission indemnities are not consideration for services and are not subject to the tax.

The DGT addresses rescission from multiple tax angles without a single doctrinal line. In IS (Corporate Income Tax), it focuses on the recognition of expenses due to ERE (Collective Redundancy) or the derecognition of fixed assets due to the rescission of leases. In IVA, it distinguishes between indemnities that do not constitute consideration and the modification of the taxable base due to debt resolution.

Turning points

  1. V2574-21

    Establishes that contractual resolution with debt forgiveness due to non-payment allows for a reduction of the IVA taxable base as it constitutes a cause for price modification.

  2. V2118-24

    Specifies that the rescission of a lease requires the derecognition of the fixed assets related to the works and the recognition of the accounting result in the fiscal year of the derecognition.

Analysis based on 15 of 15 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

15
V2662-18 2 Oct 2018

Lease tax base calculated over a minimum three-year period

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
base imponiblearrendamientoprórroga obligatoriatransmisiones patrimonialesrescisión de contrato TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 10.2.eTRITPAJD — RDLeg 1/1993 de ITP y AJD art. 57.1
Affects CompanyExpat · Non-residentIndividual
V2843-17 3 Nov 2017

Compensation for lease termination is not subject to VAT

SG de Impuestos sobre el Consumo
indemnizaciónrescisión de contratobase imponiblerectificación de cuotasfactura rectificativa LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 78.1
Affects CompanyExpat · Non-residentIndividual
V1166-17 16 May 2017

Refund of earnest money is a capital loss, but real estate fees are not

SG de Impuestos sobre la Renta de las Personas Físicas
pérdida patrimonialarras penitencialesbase imponible generalrenta al consumorescisión de contrato LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.5
Affects CompanyExpat · Non-residentIndividual

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