3.1.2. Income exempt from article 7 of the Law

According to article 7 of the Tax Law, the following incomes are exempt:

1. Aid and compensation

   • Extraordinary public benefits for acts of terrorism and pensions derived from medals and decorations awarded for acts of terrorism. In particular, compensation and financial aid received under Law 32/1999 of 8 October on Solidarity with Victims of Terrorism are exempt.

   • Aid of any kind received by those affected by the Human Immunodeficiency Virus, regulated by Royal Decree-Law 9/1993, of May 28.

   • Compensation as a result of civil liability for personal injury, in the amount legally or judicially recognized.

   • Compensation for personal injury arising from accident insurance contracts, except those whose premiums could have reduced the tax base or been considered a deductible expense from the income from professional activities by application of the provisions of article 30.2.1 of the Tax Law.

     The exemption extends to the amount resulting from applying, to the damage suffered, the system for assessing damages and injuries caused to persons in traffic accidents, incorporated as an annex in the Law on Civil Liability and Insurance in the Circulation of Motor Vehicles.

   • Compensation for dismissal or termination of the worker, in the amount established as mandatory in the Workers' Statute, in its implementing regulations or, where appropriate, in the regulations governing the execution of judgments, without being able to be considered as such the amount established by virtue of an agreement, pact or contract.

     Without prejudice to the provisions of the preceding paragraph, in cases of collective dismissals carried out in accordance with the provisions of Article 51 of the Workers' Statute or produced for the reasons provided for in letter c) of Article 52 of the aforementioned Statute, provided that, in both cases, they are due to economic, technical, organizational, production or force majeure reasons, the part of the compensation received that does not exceed the limits established as mandatory in the aforementioned Statute for unfair dismissal will be exempt.

     The amount of the exempt compensation referred to in this letter shall be limited to the amount of 180,000 euros.

   • Compensation paid by public administrations for personal injury resulting from the operation of public services, when established in accordance with the procedures provided for in Royal Decree 429/1993, of March 26, approving the Regulations of procedures of public administrations in matters of patrimonial liability.

   • The financial aid regulated in article 2 of Law 14/2002, which includes social aid for people with haemophilia or other congenital coagulopathies who have developed hepatitis C as a result of having received treatment with coagulation factor concentrates within the public health system.

   • Income derived from the application of hedging instruments when they exclusively cover the risk of an increase in the variable interest rate of mortgage loans intended for the acquisition of the taxpayer's main residence, regulated in article nineteen of Law 36/2003.

   • The compensation provided for in the legislation of the State and the Autonomous Communities to compensate for the deprivation of liberty in penitentiary establishments as a result of the cases contemplated in Law 46/1977, of October 15, on Amnesty.

2. Social Security pensions and benefits and similar

   • Benefits granted to the taxpayer by Social Security or by entities that replace it as a result of permanent total disability or severe disability.

     Likewise, the benefits granted to professionals not integrated into the special Social Security regime for self-employed workers or freelancers by social security mutual funds that act as alternatives to the aforementioned special Social Security regime, provided that they are benefits in situations identical to those provided for absolute permanent disability or severe disability by Social Security.

     The exempt amount will be limited to the amount of the maximum benefit recognized by Social Security for the corresponding concept. The excess will be taxed as work income, understood to be produced, in the case of concurrence of benefits from Social Security and the aforementioned mutual societies, in the benefits of the latter.

   • 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.

   • Maternity or paternity benefits and non-contributory family benefits regulated, respectively, in Chapters VI and VII of Title II and in Chapter I of Title VI of the consolidated text of the General Social Security Law, approved by Royal Legislative Decree 8/2015, of October 30, and pensions and passive assets for orphans and for grandchildren and siblings under twenty-two years of age or incapacitated for any work, received from the public Social Security regimes and passive classes.

     Likewise, maternity or paternity benefits received from Social Security Mutual Societies that act as alternatives to the special Social Security regime for self-employed workers or freelancers are declared exempt, up to the maximum benefit recognized by Social Security for the corresponding concept.

     Remuneration received during leave for childbirth, adoption or guardianship and paternity will also be exempt, by public employees covered by a Social Security scheme that does not entitle them to receive maternity or paternity benefits, up to the limit of the maximum benefit recognized by Social Security for the corresponding concept.

     The exempt amount will be limited to the amount of the maximum benefit recognized by Social Security for the corresponding concept. The excess will be taxed as employment income.

     Other public benefits for birth, multiple birth or adoption, adoption, maternity or paternity, dependent children and orphanhood.

   • 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.

   • Unemployment benefits recognised by the respective managing entity when received in the form of a single payment established in Royal Decree 1044/1985, of 19 June, which regulates the payment of unemployment benefits in the form of a single payment, provided that the amounts received are used for the purposes and in the cases provided for in the aforementioned regulation.

     This exemption will be conditional on maintaining the action or participation for a period of five years, in the event that the taxpayer has joined a labour company or worker cooperative or has made a contribution to the share capital of a commercial entity, or on maintaining the activity for the same period, in the case of a self-employed worker.

   • Pensions granted to those persons who suffered injuries or mutilations during or as a consequence of the 1936/1939 civil war, either under the State's Passive Classes regime or under special legislation enacted for this purpose.

3. Other public benefits

   • The economic benefits received from public institutions due to the foster care of people with disabilities, people over 65 years of age or younger, whether in the simple, permanent or pre-adoptive modality or the equivalent ones provided for in the regulations of the Autonomous Communities, including foster care in the execution of the judicial measure of cohabitation of the minor with a person or family provided for in Organic Law 5/2000, of January 12, regulating the criminal responsibility of minors.

     Similarly, financial aid granted by public institutions to people with disabilities with a degree of disability equal to or greater than 65 percent or over 65 years of age to finance their stay in residences or day centers will be exempt, provided that the rest of their income does not exceed twice the public indicator of income for multiple effects (for this year the annual amount of the IPREM has been established at 8,400.00 euros).

   • Public scholarships, scholarships granted by non-profit entities to which the special regime regulated in Title II of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, applies, and scholarships granted by banking foundations regulated in Title II of Law 26/2013, of December 27, on savings banks and banking foundations in the development of their social work activity, received to pursue regulated studies, both in Spain and abroad, at all levels and grades of the educational system, under the terms established by regulation.

     Also exempt, under the terms established by regulation, will be public scholarships and those granted by the aforementioned non-profit entities and banking foundations for research in the field described by Royal Decree 63/2006, of January 27, which approves the Statute of research personnel in training, as well as those granted by them for research purposes to civil servants and other personnel in the service of the Public Administrations and to the teaching and research staff of the universities.

   • Training and technical assistance with an economic content, with a limit of 60,100 euros, for high-level athletes adjusted to the preparation programs established by the Higher Sports Council with the Spanish Sports Federations or with the Spanish Olympic Committee, which meet the following requirements (art. 4 Rgl):

     • That its beneficiaries have been recognized as high-level athletes, in accordance with the provisions of Royal Decree 1467/1997, of September 19, on high-level athletes.

     • That they are financed, directly or indirectly, by the Higher Sports Council, by the Olympic Sports Association, by the Spanish Olympic Committee or by the Spanish Paralympic Committee.

   • The amounts paid by the Spanish State to members of international peace or humanitarian missions for the following reasons (art. 5 Rgl.):

     • Extraordinary gratuities of any nature that respond to the performance of the international peace or humanitarian mission.

     • Compensation or benefits paid for personal injuries suffered during the same.

   • Family benefits and assistance received from any of the Public Administrations, whether linked to birth, adoption, foster care or care of minor children.

   • The Social Security benefit of the Minimum Living Income (which includes, where applicable, the child aid supplement), the minimum insertion incomes established by the Autonomous Communities, as well as other aid established by these or by local entities to attend to groups at risk of social exclusion, situations of social emergency, housing needs of people without resources or food needs, schooling and other basic needs of minors or people with disabilities when they or people in their care lack sufficient financial means, these aids will be exempt up to a maximum annual joint amount of 1.5 times the IPREM (12,600.00 euros for the 2024 financial year).

   • The aid granted to victims of violent crimes referred to in Law 35/1995 as well as the aid provided for in Organic Law 1/2004 on Comprehensive Protection Measures against Gender Violence, and other public aid paid to victims of gender violence due to that condition.

4. Prizes

   Relevant literary, artistic or scientific awards, under the conditions established by regulation, as well as the "Prince of Asturias" awards, in their different modalities, awarded by the Prince of Asturias Foundation.

5. Other income

   • Annuities for maintenance received from parents under the regulatory agreement referred to in Article 90 of the Civil Code, or the equivalent agreement provided for in the regulations of the Autonomous Communities, approved by the judicial authority or formalized before the lawyer of the Administration of Justice, or in a public deed before a notary, regardless of whether said agreement derives or not from any appropriate means of dispute resolution provided for by law.

     Likewise, alimony payments received from parents by court order in cases other than those established in the previous paragraph will be exempt.

   • Income from work actually performed abroad, with a maximum limit of 60,100 euros per year, and provided that the legally established requirements are met.

   • Benefits received for burial or funeral, up to a limit of the total amount of expenses incurred.

   • The income that becomes apparent at the time of the constitution of guaranteed life annuities resulting from the individual systematic savings plans referred to in the Third Additional Provision of the Law.

   • Positive returns on movable capital from the new Long Term Savings Plans, provided that the taxpayer does not make any withdrawal of capital resulting from the Plan before the end of the 5-year period from its opening.

   • The work income derived from benefits obtained in the form of income by people with disabilities corresponding to contributions to social security systems in Article 53 of the Law, as well as the work income derived from contributions to protected assets of people with disabilities (DA 18 of the Law), up to a maximum annual amount for each of these incomes of three times the public indicator of multiple-purpose income.

1. 3.1.2.1. Exemption from certain prizes
2. 3.1.2.2.Exemption for income received from work performed abroad