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New tax? Is it possible that victims of a traffic accident may have to pay compensation?

Date: 01/31/2022

As a comment to the article published by El Mundo  we would like to share our point of view on it. 

Tax. Compensation for car accident in Spain.


It is common  practice that when someone suffers in a car accident we get in touch with an insurance company and after some negotiations we reach an agreement. In result the client gets a financial compensation. 


The Spanish government presented an idea some time ago that if this happens you'll have to pay taxes on the compensation received from the insurance company in case of an accident. The government is considering income tax on the compensation paid by insurance companies.  


Will this idea go through? 


We are still waiting for the final decision. It seems wrong to charge tax on something that is supposed to compensate you for your suffering or loss in the accident.  Unless the government creates a very “creative” regulation this law could finish with an appeal in Tribunal Constitutional. Anyway, the timeline for this procedure is still unknown. 


If you need more information this article may be helpful . If you have any questions on the topic or need attorney advice in Malaga area we recommend you reach out to our Nerja or Fuengirola office and our staff members will contact you within 24 hours. 



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