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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A self-employed individual inquired whether a €2,000 grant from the Government of Catalonia, intended to compensate for income loss due to COVID-19, is exempt from Personal Income Tax (IRPF). The Directorate General of Taxes (DGT) ruled that the exemption does not apply and that its classification depends on the nature of the beneficiary's activity.
This ruling clarifies that COVID-19 relief grants for the self-employed are not automatically tax-exempt and must be integrated into the tax base as either business income or employment income, depending on the recipient's professional status.
The tax team reviews your specific situation.
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