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A taxpayer has enquired whether a grant received for installing solar panels on their primary residence is subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that, as it is not part of an economic activity, the aid constitutes a capital gain.
This ruling clarifies that solar installation subsidies for residential use are treated as capital gains rather than business income, affecting how taxpayers report these funds in their annual tax returns.
The tax team reviews your specific situation.
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