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V0699-20 3 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Grants received by a homeowners' association are considered capital gains attributable to the owners

A query was raised regarding the tax treatment of a grant received by a homeowners' association for the installation of a boiler. The Directorate General for Taxes (DGT) ruled that the grant constitutes a capital gain that must be attributed to each owner according to their share of ownership.

The question raised

Tax treatment in Personal Income Tax of the subsidy received.

The DGT's ruling

Homeowners' associations are entities under the income attribution regime and are not taxpayers of Personal Income Tax (IRPF). The subsidy received is considered a capital gain, as it represents a variation in the value of the assets without a transfer occurring. The amount of the gain shall be the total of the subsidy received, without the possibility of reducing it by expenses. Said income shall be attributed to each owner according to their participation coefficient or as agreed upon in the bylaws.

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