Nature of the tax
The income tax on individuals is a personal, direct tax levied according to the principles of equality, universality and progressivity, the income of individuals according to their nature and their personal and family circumstances.
Article 2.
Object of the tax
The object of the taxpayer’s income tax, understood as the entirety of their income, capital investments and losses and income allocations established by law, regardless of where they may have occurred and regardless of the residence of the payer.
Article 4.
Scope of application
The Income Tax on Individuals shall be applied throughout Spanish territory.
Article 6.
Taxable income
1. Taxable income obtained by the taxpayer.
2. A taxpayer’s income includes:
a) Employment income.
b) Income from capital.
c) Income from economic activities.
d) Capital gains and losses.
e) Income allocations established by law.
3. For the purpose of determining the tax base and the tax calculation, income is classified as general and savings.
4. Income subject to the inheritance and gift tax is not subject to income tax.
5. Unless proven otherwise, benefits from assets, rights or services likely to generate income from employment or capital shall be presumed to be paid.
Article 7.
Exempt income
The following income shall be exempt from income tax:
a) Exceptional public benefits received after acts of terrorism and pensions arising from medals and decorations awarded stemming from terrorism.
b) Aid of any kind received by those affected by the human immunodeficiency virus, regulated by Royal Decree-Law 9/1993 of 28 May.
c) Pensions recognized for those who were injured or mutilated during, or as a result of, the Civil War, of 1936-1939, either under the civil service system or under special legislation enacted for that purpose.
d) Compensation resulting from liability for personal injury, to the extent legally or judicially recognized.
Likewise, compensations for the same