Public benefits and aid

Regulations: Art. 7 Law Personal Income Tax

Among others, the following are exempt:

• The economic benefits received from public institutions for sheltering people with disabilities or over 65 years old .

• The financial aid granted by public institutions to people with disabilities with a degree equal to or greater than 65% or over 65 years of age to finance their stay in residences or day centers, if the rest of their income does not exceed twice the public multiple-effect income indicator (IPREM for 2023: €8,400 - LIMIT: €8,400 x 2 = €16,800).

• The benefits recognized to the taxpayer by Social Security, by the entities that replace it or by social security mutual societies that act as alternatives to the special Social Security regime as a consequence of absolute permanent disability or severe disability .

• Pensions for uselessness or permanent disability of the passive class regime, provided that the injury or illness that had been the cause of those completely disqualified the recipient of the pension from any profession or trade.

• The benefits obtained in the form of income by people with disabilities corresponding to the contributions to social security systems established in favor of people with disabilities, up to a maximum annual amount of three times the public multiple-effect income indicator (€25,200). Any excess will be taxed as earned income.

• The public financial benefits linked to the service, for care in the family environment and personalized assistance that are derived from the Law for the promotion of personal autonomy and care for people in a situation of dependency.