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V1669-23 13 June 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Subsidies for home renovation are taxed as capital gains in Personal Income Tax

A taxpayer asks how a subsidy received for the renovation of their home in the Valencian Community should be taxed. The DGT responds that the aid constitutes a capital gain that must be attributed to the tax period in which the payment is received.

The question raised

Question raised - Taxation of the aforementioned subsidy.

The DGT's ruling

The receipt of a subsidy for home renovation constitutes a capital gain as it represents a variation in the value of the assets through the incorporation of money. This gain must be attributed to the tax period in which its collection takes place. Regarding the application of regional deductions, the competence to resolve the inquiry lies with the Administration of the corresponding Autonomous Community.

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