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V2808-21 16 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Grants for domestic solar panels are taxed as capital gains

A taxpayer has enquired whether a grant received for installing solar panels on their primary residence is subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that, as it is not part of an economic activity, the aid constitutes a capital gain.

The question raised

Taxation of the aforementioned subsidy in the Personal Income Tax.

The DGT's ruling

The receipt of subsidies for the installation of solar panels in a primary residence constitutes a capital gain as it represents a variation in the value of the assets. This gain is not subject to any applicable exemptions or non-taxable status and must be included in general income. The temporal allocation is made in the tax period in which the collection of the aid occurs.

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