Skip to main content
Practical manual for Income Tax 2019.

Investment income

The attributable net income will be determined by the difference between the total income and the deductible expenses referred to in article 26.1 of the Law of PIT

In no case may the entity of the attribution regime apply the 30% reduction contemplated in article 26.2 of the Law of the PIT for the net income provided for in section 4 of article 25 of the aforementioned Law that has a generation period of more than two years or is classified by regulation as having been obtained in a notoriously irregular manner over time when, in both cases, they are allocated to a single tax period and the amount of the net income on which the reduction is applied does not exceed 300,000 euros per year.

They will be the members of the entity under the income attribution regime who are taxpayers for the PIT those who will be able to practice this reduction in their declaration.

Depending on the nature of the attributed capital gains, the taxpayer must include it in his/her tax return as follows:

  1. In the general tax base the expected returnsin section 4 of article 25 of the Law of PIT under the name "other income from movable capital, as well as those derived from the transfer to third parties of own capital referred to in the Section 2 of the aforementioned article 25that come from entities linked to it.

  2. In the taxable base of savings the returns provided for in sections 1, 2, and 3 of article 25 of the Law of PIT (income obtained from participation in the equity of any type of entity; returns obtained from the transfer of own capital to third parties; income from capitalisation operations and life or disability insurance contracts and income from capital taxation). The commentary on these returns to be integrated into the savings base is contained in Chapter 5.