While the compensation amount itself isn’t taxable, in the sense that a lump sum isn’t taxed, anything that you may use this money for in the future will be taxed at the usual rates.
This means that if you put the money into a high-interest savings account, any interest you earn is considered income and is taxed.
Similarly, if you purchase an investment home or apartment with the compensation amount and then sell it in the future, any money you make from this purchase will incur capital gains tax.
