3.1.3. Other income not subject to tax

Within these incomes we can include among others:

1. Income from work such as:

   • Travel expenses and allowances under the conditions and limits established by regulations.
   • 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. Other income:

   • The portion of capital gains generated before January 20, 2006, derived from assets not used in economic activities, when as of December 31, 1996, they had a holding period longer than those indicated below (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.
   • 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.
   • Effective from 1 January 2014 and prior years not prescribed, capital gains derived from the transfer by payment in kind or in mortgage or notarial execution of the debtor's or guarantor's main residence are declared exempt, provided that the gain is due to the cancellation of debts guaranteed by a mortgage that falls on said main residence contracted with a credit institution or other entity that, professionally, carries out the activity of granting mortgage loans or credits. Furthermore, it is necessary that the owner of the main residence does not have other assets or rights in sufficient amount to satisfy the entire debt and avoid the sale of the home.

   • 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 acquisition or renovation of main residence, whether state or regional deduction, or deductible expense of income from real estate capital or economic activities, you must apply, in the settlement of the tax, the amounts deducted, without calculating late payment interest.

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

   1. 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.
   2. 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.
   3. Public aid, other than that provided for in section 1 above, received for the repair of damage suffered to heritage elements by fire, flood, subsidence or other natural causes, will be included in the taxable base to the extent that they exceed 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.

   4. 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.
   5. In the 2021 financial year and subsequent years, the grants awarded under the various programs established in Royal Decree 691/2021, of August 3, which regulates the subsidies to be granted to energy rehabilitation actions in existing buildings, in execution of the Energy Rehabilitation Program for existing buildings in municipalities of demographic challenge (PREE 5000 Program), included in the Regeneration and Demographic Challenge Program of the Urban Rehabilitation and Regeneration Plan of the Recovery, Transformation and Resilience Plan, as well as its direct concession to the autonomous communities, will not be integrated into the base; 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; Royal Decree 853/2021, of October 5, which regulates the aid programs in the field of residential rehabilitation and social housing of the Recovery, Transformation and Resilience Plan and Royal Decree 477/2021, of June 29, which approves the direct concession to the autonomous communities and the cities of Ceuta and Melilla of aid for the execution of various incentive programs linked to self-consumption and storage, with renewable energy sources, as well as the implementation of renewable energy thermal systems in the residential sector, within the framework of the Recovery, Transformation and Resilience Plan.

4. 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.