What is exempt income?

In your IRPF declaration you have to include all your income, that is: income from work, from movable and immovable capital, income derived from the exercise of economic activities, capital gains and losses, and the imputations of income established by law.

However, there are a number of cases in which, although the taxable event (the receipt of income) has occurred, the obligation to pay tax does not arise; when this happens, it is exempt income.

Only income that is expressly qualified as such under personal income tax regulations or other law is exempt. The exemption cannot be invoked outside the cases provided for in the law.

Exempt income is not taken into account in determining the limit of the obligation to declare and, with some exceptions, such as the exemption for reinvestment in your principal residence, you do not have to include it in your tax return.