3. Exemptions on capital gains
• Exceptional aid for personal injuries caused by natural disasters
Exceptional aid for personal injury is exempt, in cases of death and cases of permanent absolute disability, directly caused by accidents to which Royal Decree-Law 2/2019, of January 25, by which urgent measures are adopted to alleviate the damages caused by storms and other catastrophic situations ( BOE of the 26th) or Royal Decree-Law 11/2019, of September 20, by which urgent measures are adopted to alleviate the damages caused by storms and other catastrophic situations ( BOE of the 21st) applies.
Also exempt, under identical terms, are, among others, exceptional aid for personal injuries suffered by persons affected by:
- The seismic movements that occurred on May 11, 2011 in the municipality of Lorca (Murcia), in accordance with the provisions of article 2 of Royal Decree-Law 6/2011, of May 13 ( BOE of 14. Correction of errors of 18 and 19), modified by Royal Decree-Law 17/2011, of October 31 ( BOE of November 1).
- Forest fires and other natural disasters to which Law 14/2012, of December 26, applies ( BOE of the 27th). See also Royal Decrees 1505/2012, of November 2 ( BOE of the 3rd) and 389/2013, of May 31 ( BOE of June 15), which extends the scope of application of Law 14/2012.
- Wind and sea storms on the Atlantic coast and the Cantabrian coast in January and February 2014, in accordance with the provisions of articles 2 and 10 of Royal Decree-Law 2/2014, of February 21, ( BOE of 22).
- Flooding and other effects of the storms of rain, snow and wind that occurred in the months of January, February and March 2015, in accordance with the provisions of articles 2 and 10 of Royal Decree-Law 2/2015, of March 6 ( BOE of 7) or the storms of rain in the Autonomous Community of the Canary Islands and in the south and east of the peninsula in the months of September and October 2015 in accordance with articles 2 and 10 of Royal Decree-Law 12/2015, of October 30 ( BOE of 31).
- The storms of rain, wind, snow, hail and coastal phenomena that occurred in the months of November and December 2016 and in 2017 to which Royal Decree-Law 2/2017, of January 27, is applicable, by which urgent measures are adopted to alleviate the damage caused by the recent storms ( BOE of the 28th). See also Royal Decrees 265/2017, of March 17, and 1387/2018, of November 19, which extend the scope of application of Royal Decree-Law 2/2017
• Donations to certain entities
Regulations: Art. 33.4 a) Law Income Tax
Capital gains that arise from donations made to the entities mentioned in article 68.3 of the Personal Income Tax Law are exempt.
The entities referred to in article 68.3 of the Personal Income Tax Law are those that give the right to practice the deduction for donations. These entities benefiting from patronage are listed in Chapter 16.
• Transfer of their habitual residence by people over 65 years of age or people in a dependent situation
Regulations: Articles 33.4 b) Law IRPF and 41 bis of the Regulation
Capital gains that arise from the transfer of their habitual residence by persons over 65 years of age, as well as by persons who are in a situation of severe or high dependency in accordance with the Law on the promotion of personal autonomy and care for persons in situations of dependency, are exempt. The exemption also applies to the transfer of the bare ownership of the habitual residence by its owner, who reserves the life usufruct over said residence.
For the exclusive purposes of applying this exemption, it will be understood that the taxpayer is transferring his or her habitual residence when said building constitutes his or her habitual residence at that time or had been considered as such until any day of the two years prior to the date of transfer.
The non-subject to IRPF of the annuities received in certain cases of reverse mortgage of the habitual residence is discussed in the subsection " Non-taxable income ", of this same Chapter. Regarding the concept of housing, see the twenty-third Additional Provision of the Personal Income Tax Law .
• Payment of tax debts with assets that are part of the Spanish Historical Heritage
Regulations: Art. 33.4 c) Law Income Tax
Capital gains that arise from the payment of tax debts of Personal Income Tax and the Inheritance and Gift Tax through the delivery of assets that are part of the Spanish Historical Heritage are exempt in accordance with the provisions of article 73 of Law 16/1985, of June 25, on the Spanish Historical Heritage.
• Dation in payment of the habitual residence
Regulations: Art. 33.4 d) Law Income
Capital gains that arise from the payment in lieu of the habitual residence of the debtor or guarantor of the debtor are exempt, for the cancellation of debts secured by a mortgage on the same, contracted with credit institutions or any other entity that, in a professional manner, carries out the activity of granting mortgage loans or credits.
Likewise, capital gains that are revealed on the occasion of the transfer of the home in which the same requirements are met as for the previous payment in kind, carried out in judicial or notarial foreclosures, are declared exempt. .
In any case, the owner of the main residence must not have other goods or rights that could satisfy the total amount of the debt and prevent the alienation of the property.
• Exemption for reinvestment in life annuities
Regulations: Articles 38.3 Law IRPF and 42 Regulation
Capital gains arising from the transfer of assets by taxpayers over 65 years of age are exempt, provided that the total amount obtained from the transfer is used within six months to create an insured life annuity in their favour, under the conditions established by regulation. The total maximum amount that can be allocated for this purpose to constitute life annuities will be 240,000 euros.
When the reinvested amount is lower than the total of the amount received in the transfer, only the proportional part of the capital gain obtained corresponding to the reinvested amount will be excluded from taxation.
The advanced receipt, total or partial, of the economic rights deriving from the constituted life annuity will determine the subjection to taxation of the corresponding capital gain.
The detailed commentary on this exemption for the transfer of assets by taxpayers over years of age with reinvestment of amount obtained in life annuities is contained in Chapter 11.
• Exemption for reinvestment in primary residence
Regulations: Articles 38.1 Law IRPF and 41 Regulation
Capital gains obtained from the transfer of a primary residence are exempt, provided that the amount obtained is reinvested in the acquisition of another primary residence or in the rehabilitation of one that will have such character, under the conditions and requirements established by regulation, in the same year in which the capital gain is obtained, in the two previous years or in the two following years.
The conditions and requirements for the application of this exemption for reinvestment in habitual residence are discussed in Chapter 11
• Exemption for reinvestment in another newly or recently created entity
Regulations: Articles 38.2 Law IRPF and 41 Regulation
Capital gains obtained from the transfer of shares or interests for which the deduction for investment in newly or recently created companies provided for in article 68.1 of this Law has been applied are exempt, provided that the total amount obtained from the transfer of the same is reinvested in the acquisition of shares or interests in the aforementioned entities under the conditions determined by regulation.
The conditions and requirements for the application of this exemption for reinvestment in another newly or recently created entity are discussed in Chapter 11.
• Transfer of shares or interests in newly created or recently created companies acquired between July 11, 2011 and September 29, 2013
Regulations: See the thirty-fourth Additional Provision of this Personal Income Tax Law in its version in force on December 31, 2012.
Capital gains arising from the transfer of shares or interests acquired by the taxpayer in newly or recently created companies between July 11, 2011 and September 29, 2013 are exempt, provided that they have remained in the taxpayer's assets for a period of more than three years (counted from date to date) since their acquisition, and the requirements and conditions established in the Thirty-fourth Additional Provision of the Income Tax Law are met in its version in force on December 31, 2012.
• Transfer of urban properties acquired between May 12, 2012 and December 31, 2012
Regulations: Additional Provision Thirty-Seventh Law IRPF
of the capital gains that arise from the transfer of urban properties acquired for a fee from May 12, 2012 to December 31, 2012 are exempt.
This assumption is discussed under exempt capital gains in Chapter 11.
• Income obtained by the debtor in bankruptcy proceedings
Regulations: Additional Provision forty-third Law IRPF
The income obtained by debtors that is revealed as a result of debt reductions and payments in payment, established in:
- An agreement judicially approved in accordance with the procedure established in Law 22/2003, of July 9, on Bankruptcy and, since September 1, 2020, in Royal Legislative Decree 1/2020, of May 5, which approves the revised text of the Bankruptcy Law.
- A judicially approved refinancing agreement referred to in article 71 bis and the fourth Additional Provision of Law 22/2003, of July 9, Bankruptcy and, since September 1, 2020, regulated in Title II of the second book, articles 596 to 630, of Royal Legislative Decree 1/2020, of May 5, approving the revised text of the Bankruptcy Law,
- An out-of-court payment agreement referred to in Title X of Law 22/2003, of July 9, Bankruptcy and, since September 1, 2020, regulated in Title III of the second book, articles 631 to 694, of Royal Legislative Decree 1/2020, of May 5, approving the revised text of the Bankruptcy Law, or
- or finally, as a consequence of exonerations of unsatisfied liabilities referred to in article 178 bis of Law 22/2003, of July 9, Bankruptcy and, since September 1, 2020, Chapter II of Title XI of the first book, articles 486 to 502, of Royal Legislative Decree 1/2020, of May 5, which approves the revised text of the Bankruptcy Law.
In all cases, it is a necessary requirement for income to be declared exempt that the debts do not derive from the exercise of economic activities .
For informational purposes only, the table of correspondences of the provisions of Law 22/2003, of July 9, on Bankruptcy, with those of the consolidated text of the Bankruptcy Law, approved by Royal Legislative Decree 1/2020, of May 5, by virtue of the third Additional Provision thereof, may be consulted through the website of the Ministries of Justice and Economic Affairs and Digital Transformation .
Regarding the imputation criteria in the case of losses arising from overdue and unpaid credits when a reduction established in a judicially approved refinancing agreement or in an out-of-court payment agreement becomes effective, see article 14.2.k) of the Personal Income Tax Law.
• Aid to offset costs in buildings affected by the release of the digital dividend
Regulations: Additional Provision 5.4 Law IRPF
The aid granted under the provisions of Royal Decree 920/2014, of October 31, which regulates the direct granting of subsidies intended to compensate the costs derived from the reception or access to television audiovisual communication services in buildings affected by the release the digital dividend will not be included in the taxable base of ##1## IRPF ##1##.