Exemption from Personal Income Tax (IRPF) on energy efficiency grants (RD 477/2021)

Obtaining grants is usually considered a capital gain that must be included in the taxpayer's general income. However, there are specific regulatory exceptions that modify this tax treatment depending on the nature of the aid received.

What the DGT has ruled

The Dirección General de Tributos (DGT) has clarified the tax treatment of grants granted under Royal Decree 477/2021, intended for the improvement of energy efficiency. According to the issued criteria, these aids will not be included in the taxable base of Personal Income Tax (IRPF). The resolution is based on the fifth additional provision of the IRPF Law (Law 35/2006), which establishes an exception for this type of incentive starting from the 2021 tax year.

What it means for you

If you are an individual who has received financial aid to implement energy efficiency measures in your home under the framework of Royal Decree 477/2021, the tax impact is positive. This implies that:

• The amount of the grant does not constitute a taxable capital gain.
• Said amount should not be included in the income tax return as part of the general income.
• It avoids the increase in the taxable base that the receipt of income of this nature would normally entail.

What you should do

It is essential to verify that the grant received falls strictly within Royal Decree 477/2021 to apply this exemption treatment. Since the regulations establish specific conditions for this benefit, it is recommended to:

• Keep all documentation proving the granting of the aid and its link to the aforementioned Royal Decree.
• Check the correct application of the exemption in the income tax return corresponding to the tax year in which the grant is received.
• Assess your particular situation before the tax administration to ensure that you meet the requirements of the fifth additional provision of the LIRPF.