• English
  • Español

Spanish income tax 2018 untaxed income part two


Not all income is included in the 2018 tax return. In this list there are some of them:

Income from work

DSA and travel subsistence allowances under the conditions and within the limits laid down by the regulations.

Deliveries that are excluded by law from consideration as remuneration for work in kind.

50% of the income from work earned by the crew members of vessels entered in the Special Register of Shipping Companies and Vessels registered in the Canary Islands and of vessels operating regular services between the Canary Islands and between the Canary Islands and the rest of Spain, in accordance with the terms of Articles 73, shall be considered an exempt income.2 and 75 of Law 19/1994, as amended by Law 4/2006, of 29 March.

The income shall also be considered to be 50 % of the income from work accruing on the occasion of the navigation carried out by the crew members of vessels flying the Spanish flag and registered in the register of the Community fishing fleet and the company owning the vessel in the Special Register of Spanish Fishing Vessels, fishing exclusively for tuna or tuna-like species outside Community waters and not less than EUR 200 per tonne.

Subsidies from the Community's agricultural policy and public aid (Legislative Decree No 5 of Law 35/2006)

Positive income derived from the following aids will not be included in the income tax base:

1.- Aid under the Community's agricultural policy:

Definitive abandonment of vineyard cultivation.
Apple tree plantation grubbing-up premium.
Start-up premium for banana trees.
Permanent abandonment of milk production.
Permanent abandonment of the cultivation of pears, peaches and nectarines.
Start-up of pear, peach and nectarine plantations.
Permanent abandonment of sugar beet and sugar cane cultivation.

2.- Aid under the Community's fisheries policy: permanent cessation of fishing activity by a vessel and its transfer for the setting up of joint enterprises in third countries, as well as permanent cessation of fishing activities.

3.- Public aid to repair the destruction caused by fire, flooding or subsidence of heritage features.

4.- The receipt of aid for the abandonment of road transport activities paid by the Ministry of Public Works to hauliers who meet the requirements established in the regulations governing the granting of such aid.

5.- The receipt of public compensation for the compulsory slaughter of livestock as part of measures to eradicate epidemics or diseases. This rule applies only to animals intended for breeding.

Income that will not be included in the tax base:

The calculation of the untaxed positive income will take into account both the amount of aid received and the capital losses incurred on the assets. If these losses exceed the aid, the negative difference may be included in the tax base. If there are no losses, only the amount of aid will be excluded from taxation.

Public aid, other than that provided for in the preceding paragraph, received for the repair of damage to property caused by fire, flood, sinking or other natural causes, shall be included in the taxable amount to the extent that it exceeds the cost of repairing it. Under no circumstances will repair costs, up to the amount of such aid, be tax deductible or be taken into account as an improvement.
Public aid received to compensate temporary or permanent eviction for the same reasons from the taxpayer's habitual residence or from the place where the owner of the economic activity carried out the same will not be included in the taxable base of this tax.

Forest income (D.A. 4th Law 35/2006)

Subsidies granted to those who operate forest estates managed in accordance with technical forest management plans, forest management plans, anti-democratic plans or reforestation plans approved by the competent forest administration shall not be included in the taxable base for personal income tax, provided that the average production period, depending on the species concerned, determined in each case by the competent forest administration, is 20 years or more.

Profits not subject to tax

For their period of stay at 31-12-96

The part of the capital gains generated before January 20, 2006 derived from capital gains not assigned to economic activities will not be subject to tax, when at December 31, 1996 they had a period of permanence greater than those indicated below (Legislative Decree 9):

a) More than 10 years (i.e. acquired before 31-12-86), if applicable:

Real estate
Rights on immovable property
Securities representing holdings in the share capital or equity of companies and other entities whose assets consist of at least 50 per cent of real estate located in Spain, with the exception of shares or holdings representing the share capital or equity of companies or real estate investment funds.

b) More than 5 years (i.e. acquired before 31-12-91), in the case of shares admitted to trading on one of the official secondary securities markets.

c) Exceptions are made for shares representing holdings in the share capital of real estate and investment companies, which must be held for a period of more than eight years.

d) More than 8 years (i.e. acquired before 31-12-88), for other goods or rights.

IMPORTANT: For all the assets to which the above coefficients are applicable, a maximum limit of 400,000 euros is established with respect to the transfer values.

Capital gains arising from the transfer of urban real estate acquired for a consideration from 12 May 2012 to 31 December 2012 shall be exempt at a rate of 50 per cent.
Capital gains arising from the transfer of capital assets by taxpayers over 65 years of age, provided that the total amount obtained from the transfer is used, within six months, to constitute an insured annuity in their favour. The maximum amount that may be applied to the life annuity for this purpose is 240,000 euros.


Other income

The income evidenced at the time of the constitution of the insured annuities resulting from the individual systematic savings plans referred to in the 3rd Administrative Decree.

The amounts received as a result of the provisions made of the habitual residence by persons over 65 years of age, as well as by persons who are in a situation of severe dependency or great dependency referred to in article 24 of the Law for the Promotion of Personal Autonomy and Care of Persons in a Situation of Dependency, provided that they are carried out in accordance with the financial regulation relating to the acts of disposition of assets that make up the personal assets to assist the

The portion of the capital gain derived from the transfer of the ownership interest in the capital of Listed Real Estate Investment Companies (SOCIMI) determined in accordance with the provisions of Law 11/2009, of 26 October, which regulates this type of company.

Exceptional assistance for personal injury in the event of death or total and permanent disability paid as a result of the seismic movements that occurred on 11 May 2011 in Lorca will be exempt ( Art.2 and art.12.8 R.D.Ley 6/2011).

Capital gains arising from the transfer from July 8, 2014 of shares or holdings acquired by the taxpayer between July 11, 2011 and September 29, 2013 from new or recently created companies will be exempt, provided that the requirements and conditions set forth in additional provision thirty-four of the IRPF Law are met.

Capital gains arising from the receipt of aid granted to offset the costs of buildings affected by the release of the digital dividend will not be included in the tax base.

The tax will not apply to financial aid granted for sickness expenses not covered by the corresponding Health Service or Mutual Society, which are intended for the treatment or restoration of health.
With effect from 1 January 2014 and prior years that have not yet expired, the capital gains arising from the transfer of the debtor's or guarantor's habitual residence in lieu of payment or mortgage foreclosure or notarial foreclosure are declared exempt.

They will be exempt as long as the gain is from the cancellation of debts secured by a mortgage that falls on the habitual residence contracted with a credit institution or other entity that, in a professional manner, carries out the activity of granting loans or mortgage credits.

It is necessary that the owner of the habitual residence does not have other assets or rights in sufficient quantity to satisfy the totality of the debt and to avoid the alienation of the house.

The tax shall not apply to the repayment of sums previously paid in interest by way of interest under interest rate limitation clauses on loans, whether in cash or through other compensatory measures, or through agreements with financial institutions. (Floor clause).

In any case, if the amounts now returned were the subject of a deduction for the purchase or refurbishment of a habitual residence, either a state or autonomous community deduction, or an expense deductible from income from real estate capital or economic activities, you must apply the amounts deducted, without calculating interest for late payment, to the tax settlement in boxes 0539, 0541 and 0544.



Josep Navarro's picture
Josep Navarro es Licenciado en Económicas por la UB, especializado en Inspecciones Tributarias, con más de 25 años de experiencia en asesoría fiscal para empresas y particulares en España.