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Practical manual for Income Tax 2020.

Special reference to public subsidies and aid that are classified as capital gains

SUBSIDIES AND PUBLIC AID

The following SUBSIDIES will be classified as capital gains:

a) When its acquisition is linked to a patrimonial element not affected by economic activity . Among other:

  • Grants for the acquisition or rehabilitation of habitual housing (boxes [0299] and [0300] )
  • Grants for the repair of structural defects in the habitual residence (box [0300] )
  • Public aid for the payment of IBI (box [0301] )
  • Public aid derived from the Renewal Plan for the goods in question (household appliances, boilers, windows, air conditioning, etc.) (box [0301] )
  • Public aid for the installation of ramps, elevators, even if they are installed to improve mobility (box [0301] )
  • Public aid to the so-called "Efficient Vehicle Incentive Program (PIVE)" If the beneficiaries are taxpayers of the IRPF who do not carry out any economic activity, they are a capital gain. (box [0301] )

These public subsidies, although linked to a patrimonial element, do not derive from its transfer and, therefore, must be included in the IRPF declaration in section F1 within "Other capital gains and losses that do not derive from the transfer of patrimonial elements."

b) When its obtaining is not linked to a patrimonial element, and is not classified as work or economic activity performance , for example:

  • Basic income for emancipation (box [0303] )
  • Cultural vouchers. Although the aid is implemented through the delivery of vouchers for discount on cultural products and services, it is treated as capital gains (box [0304] )