Exemptions

Other exempt income other than that provided for in article 7 of the Personal Income Tax Law

50% exemption from employment income received by crew members of Canary Islands vessels registered in the Special Register of Vessels and Shipping Companies of the Canary Islands. 

The first Final Provision of Law 11/2021, of July 9, on measures to prevent and combat tax fraud ( BOE of 10) modified article 73 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, in order to adapt the Special Registry of Ships and Shipping Companies to the Community Guidelines on aid provided to maritime transport, contained in Communication C(2004)43 of the European Commission.

As a result of this modification, from January 1, 2021, the 50% exemption on employment income will also apply to crew members, taxpayers of IRPF , of ships of shipping companies registered in the Special Register of Ships and Shipping Companies that were registered in another Member State of the European Union or the European Economic Area, since in such cases the aforementioned ships will be considered as registered in the Special Register, provided that they meet the same requirements and conditions as those registered.

Exemption for exceptional aid for personal injuries caused by natural disasters (storm "Filomena" and volcanic eruption on the island of La Palma)

In accordance with the provisions of Royal Decree-Law 10/2021, of May 18 ( BOE of the 19th), exceptional aid granted in cases of death and permanent absolute disability caused directly by the storm "Filomena" is exempt.

Likewise, aid granted for personal injuries caused directly by volcanic eruptions on the island of La Palma is declared exempt, in accordance with the provisions of Royal Decree-Law 20/2021, of October 5, which adopts urgent support measures for the repair of damage caused by volcanic eruptions and for the economic and social reconstruction of the island of La Palma ( BOE of 6).

Exemption from public aid received to repair the destruction of heritage elements due to natural disasters

As a result of the eruption of the Cumbre Vieja volcano on the island of La Palma, the wording of section 1.c) of the Fifth Additional Provision of the Personal Income Tax Law is also modified, with effect from 1 January 2021, by article 4.1 of Royal Decree-Law 25/2021, of 8 November, Royal Decree-Law 25/2021, of 8 November, on measures regarding Social Security and other fiscal measures for social support on the island of La Palma (BOE of the 6th)., to specifically include the volcanic eruption as a cause for declaring exempt the receipt of public aid that aims to repair the destruction caused by it to heritage elements.

Exemption for subsidies and aid granted for energy rehabilitation actions in buildings

Article 1.3 of Royal Decree-Law 19/2021, of October 5, on urgent measures to promote building rehabilitation activity in the context of the Recovery, Transformation and Resilience Plan ( BOE of the 6th), modified section 4 of the Fifth Additional Provision of the Personal Income Tax Law , to establish that aid and subsidies granted for energy rehabilitation actions in buildings, by virtue of the different programs established in Royal Decrees 691/2021, 737/2020 and 853/2021, would not be integrated into the 2021 and subsequent years.

Likewise, with effect from January 1, 2021, as a result of the eruption of the Cumbre Vieja volcano on the island of La Palma, article 4.1 of Royal Decree-Law 25/2021, of November 8, on measures regarding Social Security and other fiscal measures of social support ( BOE of the 9th), has modified section 1.c) of the Fifth Additional Provision of the Personal Income Tax Law, to expressly incorporate, among the natural causes that determine the non-taxation in the Personal Income Tax of public aid for the destruction of heritage elements, the mention of the "volcanic eruption".