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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A self-employed worker inquired about the taxation of a grant from the Canary Islands Government aimed at promoting self-employment. The Directorate General for Taxes (DGT) ruled that such grants constitute income from economic activities, and their timing for tax purposes depends on their purpose and the chosen accounting method.
This ruling clarifies the tax treatment of self-employment grants, confirming they must be reported as business income rather than other types of income, which affects how and when they are declared to tax authorities.
The tax team reviews your specific situation.
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