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V1321-24 6 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Energy renovation subsidies received by property owners' associations are exempt from income tax

A property owners' association inquired about the tax treatment of an advance payment for energy renovation works. The DGT confirms that the subsidy is exempt and that the association has no obligation to file model 184 unless certain thresholds are exceeded.

The question raised

Taxation and temporal imputation of the subsidy received for Personal Income Tax purposes.

The DGT's ruling

The subsidy granted under Royal Decree 853/2021 is exempt from Personal Income Tax (IRPF), therefore the co-owners are not required to declare the capital gain. The community is not obliged to file Form 184 unless it carries out an economic activity or has non-exempt income exceeding 3,000 euros. Regarding Form 347, it will not be necessary if the operations are declared in other periodic informative obligations. The owners may apply the energy rehabilitation deduction according to their participation coefficient, deducting the subsidized amounts.

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