3.1.3. Other income not subject to tax

Among other:

1. Income from work includes:

   • Diets and travel expense allowances under the conditions and within the limits established by regulation.
   • Deliveries that are excluded by law from consideration as remuneration for work in kind.
   • 50% of the gross income from work of crew members on Canary Islands vessels when they meet certain requirements and conditions.
   • From 1 January 2023, the employment income obtained by the directors, managers or employees of the venture capital entities listed in section 2 of DA 53 of the Personal Income Tax Law will be exempt by 50% when certain requirements are met.

2. Community agricultural policy subsidies and public aid (DA 5 Law 35/2006)

   • Positive income derived from the following aid will not be included in the tax base of Income Tax:

     • Aid from the Community agricultural policy:
       1. Definitive abandonment of vineyard cultivation.
       2. Bonus for uprooting apple orchards.
       3. Banana tree uprooting bonus.
       4. Permanent abandonment of milk production.
       5. Definitive abandonment of the cultivation of pears, peaches and nectarines.
       6. Starting of pear, peach and nectarine plantations.
       7. Definitive abandonment of the cultivation of sugar beet and sugar cane.
       8. Aid to climate and environmental protection schemes (eco-schemes).
     • Aid from the Community fisheries policy: definitive cessation of a vessel's fishing activity and its transfer for the establishment of joint ventures in third countries, as well as the definitive abandonment of fishing activity.
     • Public aid aimed at repairing the destruction caused by fire, flooding or collapse of heritage elements.
     • The receipt of aid for abandoning road transport activity paid by the Ministry of Public Works to transporters who meet the requirements established in the regulations governing the granting of said aid.
     • The receipt of public compensation for the compulsory slaughter of livestock, within the framework of actions aimed at eradicating epidemics or diseases. This rule only affects animals intended for breeding.

   Income that will not be included in the tax base:

   To calculate the positive untaxed income, both the amount of aid received and the capital losses incurred in the assets will be taken into account. If these losses are greater than the aid, the negative difference may be included in the tax base. If there are no losses, only the amount of the aid will be excluded from taxation.

   • Public aid, other than that provided for in the previous section, received for the repair of damage suffered by assets due to fire, flooding, subsidence or other natural causes, will be included in the tax base in the part in which it exceeds the cost of repairing them. In no case will the repair costs, up to the amount of the aforementioned aid, be tax deductible or counted as an improvement.

     Public aid received to compensate for the temporary or permanent eviction for identical reasons from the taxpayer's habitual residence or from the premises in which the owner of the economic activity carried out the same will not be included in the taxable base of this Tax.

   • The tax base will not include aid granted under the provisions of Royal Decree 920/2014, of October 31, which regulates the direct granting of subsidies intended to offset the costs arising from the reception or access to television audiovisual communication services in buildings affected by the release of the digital dividend.

3. Forest rents (DA) 4 Law 35/2006)

   Subsidies granted to those who exploit forest farms managed in accordance with technical forest management plans, forest management, forestry plans or reforestation plans approved by the competent forestry authority will not be included in the tax base of Personal Income Tax, provided that the average production period, depending on the species in question, determined in each case by the competent forestry authority, is equal to or greater than 20 years.

4. Non-taxable profits

   For his period of stay until 31-12-96

   • The portion of capital gains generated before January 20, 2006 derived from assets not affected by economic activities, when on December 31, 1996 they had a period of permanence greater than those indicated below, will not be subject to tax (DT 9 Law):

     1. More than 10 years ( i.e. acquired before 31-12-86), if it is:

        • Real estate
        • Real estate rights
        • Securities representing participations in the share capital or assets of companies and other entities whose assets consist, at least 50%, of real estate located in Spanish territory, with the exception of shares or participations representing the share capital or assets of companies or real estate investment funds.
     2. More than 5 years (i.e. acquired before 31-12-91), in the case of shares admitted to trading on any of the official secondary securities markets.
     3. An exception is made for shares representing participation in the share capital of Real Estate and Mutual Fund Companies, whose holding period for these purposes must be greater than 8 years.
     4. More than 8 years (i.e. acquired before 31-12-88), for other assets or rights.

   Note: For all assets to which the above coefficients apply, a maximum limit of 400,000 euros is established for the transfer values.

   • Capital gains arising from the transfer of urban property acquired for valuable consideration from 12 May 2012 to 31 December 2012 will be 50% exempt.
   • Capital gains arising from the transfer of assets by taxpayers over 65 years of age, provided that the total amount obtained from the transfer is used, within a period of six months, to create an insured life annuity in their favour. The maximum amount that may be applied, for these purposes, to the life annuity will be 240,000 euros.

5. Other income

   • The income that is revealed at the time of the constitution of insured life annuities resulting from the individual systematic savings plans referred to in DA 3
   • Amounts received as a result of the dispositions made of the habitual residence by persons over 65 years of age, as well as by persons who are in a situation of severe or great dependency as referred to in article 24 of the Law on the Promotion of Personal Autonomy and Care for Persons in Situations of Dependency, provided that they are carried out in accordance with the financial regulations relating to the acts of disposition of assets that make up the personal assets to assist the economic needs of old age and dependency.
   • The portion of the capital gain derived from the transfer of the participation in the capital of Listed Public Limited Companies for Investment in the Real Estate Market (SOCIMI) determined in accordance with the provisions of Law 11/2009, of October 26, which regulates this type of companies.
   • Exceptional aid for personal injury in cases of death and absolute and permanent disability paid as a result of the seismic movements that occurred on May 11, 2011 in Lorca will be exempt (Art. 2 and art. 12.8 RDLey 6/2011).
   • Capital gains that arise from the transfer, after July 8, 2014, of shares or interests acquired by the taxpayer between July 11, 2011 and September 29, 2013, in newly or recently created companies will be exempt, provided that the requirements and conditions established in the Thirty-fourth Additional Provision of the Personal Income Tax Law are met.
   • Capital gains arising from the receipt of aid granted to offset the costs of buildings affected by the release of the digital dividend will not be included in the tax base.
   • Financial aid granted for medical expenses not covered by the corresponding Health Service or Mutual Fund, which are intended for treatment or restoration of health, will not be subject to tax.
   • With effect from 1 January 2014 and previous years not prescribed, capital gains arising from the transfer by payment in kind or by foreclosure or notarial execution of the habitual residence of the debtor or the debtor's guarantor are declared exempt.

     They will be exempt as long as the profit is from the cancellation of debts secured by a mortgage on said habitual residence contracted with a credit institution or another entity that, in a professional manner, carries out the activity of granting mortgage loans or credits.

     It is necessary that the owner of the principal residence does not have other goods or rights of an amount that would be sufficient to pay the whole debt and prevent the loss of the residence.

   • Refunds arising from agreements entered into with financial institutions, in cash or through other compensation measures, together with any compensatory interest that may be received, of amounts previously paid in the form of interest for the application of clauses limiting interest rates on loans, will not be subject to tax. (Floor clause).

     In any case, if the amounts now returned were subject to deduction for the acquisition or rehabilitation of a habitual residence, whether it was a state or regional deduction, or a deductible expense from real estate capital gains or economic activities, you must apply the deducted amounts to the tax settlement, without calculating late payment interest.

   • Exceptional aid granted in the event of death and permanent total disability caused directly by the storm “Filomena”, in accordance with the provisions of Royal Decree-Law 10/2021, of May 18.
   • Aid granted for personal injuries caused directly by volcanic eruptions on the island of La Palma 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.
   • Those granted under the different programmes established in Royal Decree 691/2021, of 3 August, which regulates the subsidies to be granted for energy renovation actions in existing buildings, in execution of the Energy Renovation Programme for existing buildings in municipalities with demographic challenges (PREE 5000 Programme), included in the Regeneration and Demographic Challenge Programme under the Urban Rehabilitation and Regeneration Plan of the Recovery, Transformation and Resilience Plan, as well as those granted directly to the Autonomous Communities; Royal Decree 737/2020, of 4 August, which regulates the programme of assistance for energy renovation actions in existing buildings and regulates the direct granting of assistance under this programme to the autonomous communities and the cities of Ceuta and Melilla; and Royal Decree 853/2021, of 5 October, which regulates the programme of assistance for residential renovation and social housing under the Recovery, Transformation and Resilience Plan.