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Practical Income Manual 2022.

14. Unemployment benefits received in the single payment modality

Regulations: Art. 7.n) Law Personal Income Tax

Unemployment benefits recognized by the respective managing entity are exempt, regardless of their amount, when they are received in the single payment modality established in Royal Decree 1044/1985, of June 19, which regulates the payment of unemployment benefit in its single payment modality ( BOE of July 2), provided that the amounts received are used for the purposes and in the cases provided for in the aforementioned standard.

Please note that, with effect from October 10, 2015, article 34.1 of Law 20/2007, of July 11, of the Statute of Self-Employed Work (BOE of July 12) provides that the provisions of the Royal Decree will be maintained. 1044/1985, of June 19, which establishes the payment of unemployment benefit in its single payment modality, including the modifications incorporated by subsequent regulations, insofar as it does not oppose the rules that in this same section 1 of article 34 are indicated.

The cases for which the single unemployment payment can be requested are:

  • The start of an activity as a self-employed worker.

  • Incorporation into a cooperative, existing or newly created, as a stable worker or work member.

  • The constitution of a labor company or the incorporation of an existing one, as a stable working or working partner.

  • Contribution to the share capital of a newly created company or commercial entity or incorporated within a maximum period of twelve months prior to the contribution, provided that they are going to have effective control of it, and to exercise a professional activity in it, framed in the Special Regime for Self-Employed Workers (RETA) or in the Special Regime of Social Security for Sea Workers.

This exemption will be conditioned to the maintenance of the action or participation during the period of five years, in the event that the taxpayer had joined labor companies or associated labor cooperatives or had carried out a contribution to the share capital of a commercial entity, or to the maintenance, for the same period, of the activity, in the case of the self-employed worker.