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V3494-20 2 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Grants for homeowners' associations are treated as capital gains for each owner

A homeowners' association sought guidance on how a grant for elevator installation should be allocated when part of the amount must be apportioned among members who meet the eligibility criteria. The Directorate General for Taxes (DGT) ruled that the grant constitutes a capital gain to be attributed to each owner in accordance with the terms set out in the award resolution.

The question raised

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

The DGT's ruling

Homeowners' associations are entities under the income attribution regime and are not taxpayers of Personal Income Tax (IRPF). The subsidy received is considered a capital gain pursuant to Article 33.1 of the Personal Income Tax Law (LIRPF). Said income shall be attributed to each owner in accordance with the provisions of the granting resolution, adding the expressly assigned amount plus the portion resulting from the pro-rata distribution of members who do not have the right to enjoyment. If the subsidy exceeds 3,000 euros, the association must file Form 184.

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