3. Other special rules
a. Loans with interest rates lower than the legal rate, arranged after January 1, 1992
The valuation will be based on the difference between the amount of interest actually paid and the amount that would result from applying the legal interest rate in force for each year. By 2025, the legal interest rate has been set at 3.25 percent.
See Additional Provision Forty-Second of Law 31/2022, of December 23, on the General State Budget for the year 2023 (BOE of December 24), whose budgets are understood to be extended for 2024 and 2025.
However, loans with an interest rate lower than the legal rate of money agreed before January 1, 1992, and whose principal was made available to the borrower also before that date, are not considered remuneration in kind. See in this regard the Second Additional Provision of the Law of PIT.
b. Other benefits in kind that are valued at the cost to the employer, including taxes levied on the transaction
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The benefits in respect of food, lodging, travel and similar.
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The premiums or fees paid under insurance contract or similar.
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The amounts intended to satisfy study and living expenses of the taxpayer or other persons linked to the taxpayer by kinship ties, including affinities, up to and including the fourth degree.
c. Contributions paid by pension plan promoters, contributions paid by promoter companies regulated in Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016, amounts paid by employers to meet pension commitments and amounts paid by employers to long-term care insurance
The valuation will coincide with the amount of contributions or amounts paid that have been attributed to the recipient.
Precision: Please note that, with effect from 13 January 2019, Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 repealed Directive 2003/41/EC referred to in Article 43.1.1.e) of the Law on PIT.
d. Special rights of economic content reserved by the founders or promoters of a company as remuneration for personal services
Regulations: Articles 47 Regulation PIT
When the rights consist of a percentage of the entity's profits, they will be valued, at a minimum, at 35 percent of the equivalent value of the share capital that allows the same participation in the profits as that recognized for the aforementioned rights. However, subsequent payments for holding those rights will constitute income from movable capital.
The total value of these special rights may not exceed 10 percent of the net profits obtained according to the balance sheet, after deducting the quota allocated to the legal reserve and for a maximum period of 10 years, in accordance with the provisions of Article 27 of the consolidated text of the Capital Companies Law, approved by Royal Legislative Decree 1/2010, of July 2.
e. Precautionary rule of assessment: price offered to the public
Regulations: Art. 43.1.1 f) Law PIT and 48 Regulation PIT
When the performance of work in kind is satisfied by companies whose usual activity is to carry out the activities that give rise to it, the valuation may not be less than the price offered to the public of the good, right or service in question.
The price offered to the public shall be that provided for in Article 60 of the consolidated text of the General Law for the Defense of Consumers and Users and other complementary laws, approved by Royal Legislative Decree 1/2007, of November 16 (BOE as of November 30), deducting ordinary or common discounts. The following are considered to have this status:
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Discounts offered to other groups with similar characteristics to the company's employees.
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Promotional discounts that are of a general nature and are in force at the time of payment of the in-kind compensation.
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Any other than those mentioned above, provided they do not exceed 15 percent or 1,000 euros per year.
See in this regard the Second Additional Provision of the Regulations of PIT which regulates prior agreements for the valuation of in-kind remuneration for personal work for the purpose of determining the advance payment of PIT.
In the case of transfer of the use of vehicles considered energy efficientthe resulting valuation will be reduce by up to 30 percent, under the terms and conditions discussed in this Chapter.
f. Delivery of shares or stakes granted to the employees of a startup company
Regulations: Art. 43.1.1 g) Law Personal Income Tax
In the case of delivery of shares or holdings granted to the employees of a startup company who may benefit from the exemption provided for in Article 42 of the Law of PIT, the performance of work in kind will be computed:
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If you have carried out a capital increase in the year prior to the year in which the shares or equity interests are delivered: for the value of the shares or equity interests subscribed by an independent third party in that last expansion.
- If the aforementioned expansion has not taken place: based on the market value of the shares or equity interests at the time of delivery to the employee.
Please note that the exemption of up to 50,000 euros provided for in Article 42.3.f) of the Law may apply. PIT for the delivery of shares or stakes to employees of emerging companies.
Also, take into account the special criterion of temporal imputation in the non-exempt part of these earnings provided for in article 14.2.m) of the Law of PIT which is examined later.
Note: see the chart: Delivery of shares free of charge or at a price below the normal market price by the company to its employees.