Energy rehabilitation grants are not taxable in Personal Income Tax

The receipt of grants is usually considered a capital gain that must be included in the taxpayer's general income. However, current regulations establish specific exceptions to incentivize certain activities, such as energy efficiency in the residential sector.

What the DGT has resolved

The Dirección General de Tributos (DGT) has clarified the tax nature of the aid granted under Royal Decree 691/2021. The criteria establish that, although the receipt of a grant usually constitutes an increase in wealth, the fifth additional provision of the Personal Income Tax Law (LIRPF) acts as a regulatory exception.

Consequently, grants intended for energy rehabilitation under this regulatory framework will not be included in the taxable base of the tax. This means that the beneficiary is not obliged to declare said amount as a capital gain in their income tax return.

What it means for you

If you are an individual who has received financial aid to carry out energy efficiency works in your home, this criterion grants you a direct tax advantage. The amount received will not increase your tax burden nor modify your IRPF taxable base.

This treatment prevents the benefit obtained through the grant from being reduced by the payment of taxes, ensuring that the aid fulfills its objective of promoting the energy improvement of properties without additional tax penalties.

What you should do

It is fundamental that, when filing your income tax return, you verify that these aids have been correctly treated under the exception of the fifth additional provision of the LIRPF. Although the exemption is clear, it is necessary to:

• Keep all documentation proving that the grant was awarded under Royal Decree 691/2021.
• Verify that the purpose of the aid is strictly energy rehabilitation in accordance with the cited regulations.
• Assess each particular situation with a professional to ensure that the exemption is applied correctly according to the origin of the funds.