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V1242-25 7 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · base imponible

DANA damage aid in Valencia exempt from IRPF taxation

The DGT confirms that aid under Decree 163/2024 for losses of essential goods in Valencia does not form part of IRPF taxable income.

The question raised

Taxation under Personal Income Tax (IRPF) of the aid established in Decree 163/2024, of November 4, of the Consell, approving the regulatory bases and the procedure for the direct granting of urgent aid to mitigate the loss of essential goods of natural persons, caused by the wind and rain storm that began on October 29, 2024, in the Valencian Community.

The DGT's ruling

Public aid intended to mitigate housing damage caused by natural events shall not be included in the personal income tax (IRPF) taxable base pursuant to the fifth additional provision of the Personal Income Tax Law (LIRPF). In the case of aid to repair destruction caused by flooding, any resulting positive income shall not be included. If the aid is less than the capital losses, the negative difference may be included in the taxable base.

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