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Spain Exempts Valencia DANA Aid From Income, Wealth and Corporate Taxes

The retroactive relief set out in Royal Decree‑law 16/2025 follows talks between Juanfran Pérez Llorca and Pedro Sánchez, with Congress still to ratify it.

Overview

  • The exemption covers grants issued under Generalitat Decrees 172/2024 for affected companies and 176/2024 for self‑employed workers.
  • The measure applies to IRPF, Wealth Tax and Corporate Tax, preventing beneficiaries from being taxed on the emergency support.
  • The relief is retroactive to October 29, 2024, ensuring aid already paid will not generate tax liabilities.
  • The decree is dated December 23 and published in the Boletín Oficial del Estado, taking effect pending congressional convalidation.
  • Pérez Llorca welcomed the move as fair but called it insufficient, pressing for faster reconstruction, financing reform and a 4% VAT on home purchases.