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V1311-22 9 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Energy efficiency grants taxed as capital gains; no deductions for new-build properties

A taxpayer inquired about the taxation of grants received for solar panels and geothermal energy, and whether energy efficiency deductions could be applied. The Directorate General for Tax (DGT) ruled that such grants are treated as capital gains and that state tax deductions do not apply to newly constructed dwellings.

The question raised

Taxation in the Personal Income Tax (IRPF) of subsidies received, as well as the possibility of applying the deduction for works to improve the energy efficiency of dwellings and deductions from the Autonomous Community of Galicia for said installations.

The DGT's ruling

Subsidies received by individuals outside of an economic activity constitute a capital gain that is integrated into general income. These gains are attributed to the tax period in which the payment is received. State deductions for energy efficiency require proof of improvement compared to a previous situation through certificates, which is impossible in newly constructed dwellings. Regarding regional deductions, the competence to resolve lies with the respective Autonomous Community.

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