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Specific Income Tax Manual 2023 for people over 65 years of age

Public benefits and aid

Regulations: Art. 7 Law Income Tax

The following are exempt, among others:

  • The economic benefits received from public institutions for the care of people with disabilities or people over 65 years of age .

  • The financial aid granted by public institutions to people with disabilities with a degree equal to or greater than 65% or over 65 years of age to finance their stay in residences or day centers, if the rest of their income does not exceed twice the public indicator of multiple-effect income (IPREM for 2023: €8,400 - LIMIT: 8,400 € x 2 = 16,800 €).

  • The benefits granted to the taxpayer by Social Security, by the entities that replace it or by the mutual social security societies that act as alternatives to the special Social Security regime as a result of permanent absolute disability or severe disability .

  • Pensions for disability or permanent incapacity of the passive classes regime, provided that the injury or illness that caused them completely disables the recipient of the pension for any profession or trade.

  • The benefits obtained in the form of income by people with disabilities corresponding to the contributions to social security systems established for the benefit of people with disabilities, up to a maximum annual amount of three times the public indicator of multiple-purpose income (€25,200). Any excess will be taxed as earned income.

  • Public economic benefits linked to the service, for care in the family environment and personalized assistance that are derived from the Law on the promotion of personal autonomy and care for people in situations of dependency.