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V2555-20 28 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Grants for building works are allocated to owners based on their share coefficient

A query was raised regarding how members of a homeowners' association should be taxed on a grant received to remove architectural barriers. The Directorate General for Taxes (DGT) rules that the grant is allocated to each owner in accordance with the Horizontal Property Act.

The question raised

Criterion for the attribution of the subsidy in Personal Income Tax (IRPF) to the members of the homeowners' association.

The DGT's ruling

Homeowners' associations are not taxpayers, but rather entities under the income attribution regime. The subsidy received is of the nature of a capital gain. This income shall be attributed to each owner according to the applicable rules or agreements, and in this case, in accordance with the resolution granting it, it shall be prorated among the members based on their participation coefficient in the building.

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