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V0671-18 14 March 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · acogimiento de menores

Financial allowances for foster care are exempt from Personal Income Tax

A query was raised regarding whether financial compensation received for foster care is subject to Personal Income Tax (IRPF). The Directorate General of Taxes (DGT) has ruled that these allowances, received from public institutions, are exempt.

The question raised

Taxation of fostering benefits for minors under Personal Income Tax.

The DGT's ruling

Economic benefits received from public institutions due to the fostering of minors, whether in simple, permanent, or pre-adoptive modalities, are exempt from Personal Income Tax (IRPF). Equivalent benefits provided for under the regulations of the Autonomous Communities are also included.

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