Not derived from transfers of assets

Regulations: Art. 34.1.b) Law Income Tax

In other cases other than onerous or lucrative transfer, the amount of the capital gain or loss will be the market value of the assets or proportional parts , where applicable.

This category of capital gains should include the incorporation of assets or rights into the taxpayer's estate that do not derive from a prior transfer, such as, for example, the receipt of certain subsidies or aid for the acquisition or rehabilitation of the habitual residence, rental aid, the 200 euro aid for people with low income and assets, the Youth Cultural Bonus, those derived from the forestry use of public forests by residents, interest of a compensatory nature arising from the delay in the fulfillment of an obligation, including the payment of salaries, as well as prizes obtained for participation in games, contests, raffles or random combinations.

New in 2022:

Aid of 200 euros to individuals with low income and assets

Article 31 of Royal Decree-Law 11/2022, of June 25, which adopts and extends certain measures to respond to the economic and social consequences of the war in Ukraine, to address situations of social and economic vulnerability, and for the economic and social recovery of the island of La Palma, has introduced, in order to alleviate the detrimental effect on prices caused by the energy crisis resulting from the invasion of Ukraine, an aid called "Direct line of aid to individuals with low income and assets".

This is a one-off payment aid, the amount of which is 200 euros, and the beneficiaries are individuals who carry out an activity on their own or as an employee for which they were registered in the corresponding Social Security or mutual fund scheme, or were unemployed registered with the employment office, or beneficiaries or not of unemployment benefits or subsidies, provided that in 2021 they had received an income of less than 14,000 euros per year, and had assets of less than 43,196.40 euros per year.

The calculation of income and assets to obtain the aid is carried out jointly, considering all persons who reside with the beneficiary in the same domicile as of January 1, 2022 and are united to each other by marriage or a similar relationship of affection to that of a spouse for at least two years in advance or by kinship, up to the third degree, including those by marriage, with any of the above, as well as other persons with whom any of the above live by virtue of guardianship for the purposes of adoption or permanent foster care.

For its beneficiaries, this aid is considered capital gain.

Youth cultural bonus:

Law 22/2021, of December 28, on the General State Budget for the year 2022 ( BOE of December 29) created, with effect from January 1, 2022, the so-called "Youth Cultural Voucher", aimed at facilitating young people's access to culture.

This is an aid for the acquisition of cultural products and services offered by the entities that join the program, the maximum amount of which is 400 euros per beneficiary, with beneficiaries being those young people who have turned 18 during the year 2022 and meet the requirements demanded by Royal Decree 210/2022, of March 22, which establishes the regulations governing the Young Cultural Voucher ( BOE of March 23).

The amount is granted once to each beneficiary and must be used within a maximum period of one year from the date of granting. The amount granted is paid in a single payment using virtual prepaid cards. After the aforementioned 1-year period has elapsed, the Youth Cultural Bonus is automatically deactivated, and the collaborating entity proceeds to refund the amounts not used.

For this reason, only the monetary amount of the aid that has been effectively used in the acquisition of cultural products and services gives rise to a capital gain for the people who have benefited from it.

Specific assumptions:

In the case of grants the amount of said gain will be the monetary amount of the grant.

In relation to the prizes, it is worth distinguishing:

Cash prizes. These prizes are subject to withholding, so the amount computable as capital gain will consist of the entire prize without deducting the withholding incurred, which will be declared as such in the section of the declaration corresponding to withholdings and other payments on account.
Prizes in kind. These prizes are subject to advance payment, so the total computable amount will be composed of the sum of the valuation of the prize received, which will be carried out at its market value, plus the advance payment, unless the latter has been passed on to the taxpayer.

In the case of legal costs two situations must be distinguished:

Taxpayer obligated—by court ruling—to pay the legal defense costs incurred by the winning party in the process.

This is a capital loss that will be imputed in the tax period in which the conviction became final, since it is in said tax period when the change in assets that gives rise to it takes place. It is integrated into the general tax base in the manner and with the limits established in article 48 of the IRPF law.
Taxpayer who, as the winner of a legal proceeding, receives a certain amount for the condemnation of legal costs to the opposing party.

In this case, in order to determine the capital gain that the opposing party may incur from being ordered to pay legal costs, the winning litigant may deduct from the amount received in the form of costs the expenses incurred in connection with the lawsuit, a deductible amount that may reach a maximum of the amount received, without exceeding it. Therefore, if the amount of the award of costs corresponds to the expenses incurred - which can be classified as costs - there will not have been a capital gain for the consultant with respect to the costs. See Resolution of the TEAC of June 1, 2020, Claim number 00/06582/2019 , issued in an appeal for the unification of criteria.

In the case of late payment interest, the recent Supreme Court ruling no. 24/2023, of January 12, issued in cassation appeal no. 2059/2020 (ROJ: STS 121/2023), establishes as doctrine: "the late payment interest paid by the Tax Agency when making a refund of undue income is subject to and not exempt from IRPF , constituting a capital gain that constitutes general income, in accordance with the provisions of article 46.b) of the Personal Income Tax Law, interpreted a sensu contrario."

This criterion is also applicable to late payment interest paid by other Administrations, entities or subjects other than the Tax Agency and, in general, to compensatory interest received by taxpayers which, following the Supreme Court ruling, are classified as capital gains to be included in the general tax base because, as the Court states, they have not been made clear on the occasion of the transfer of assets.

Note: the return, in cash or through other compensation measures, of amounts previously paid to financial institutions as interest for the application of interest rate limitation clauses on loans ( -called floor clause), together with their corresponding compensatory interest, arising from both agreements entered into with financial institutions and compliance with judgments or arbitration awards, will not be included in the tax base of ##1## IRPF ##1##.