Requirements

1. The calculation of income from the previous year shall be carried out in accordance with the following rules:

a) In general terms, income shall be calculated by its gross value, except income arising from economic activities, property leases or special schemes, which shall be calculated on the basis of their net return.

b) Income from economic activities, capital gains generated in the financial year and from special schemes shall be calculated by  the amount   included in the taxable base of the Personal Income Tax according to the regulations in force in each period.

c) When the beneficiary has leased real estate, its income shall be considered as income less expenditure, before any reduction to which the taxpayer is entitled, and both determined, in accordance with the provisions of the regulation on Personal Income Tax, or corresponding legal regulations, applicable to the persons who form the cohabitation unit.  If the property is not leased, the computable income shall be assessed according to the rules established for the attribution of real estate income in the aforementioned regulations and corresponding foral rule.

d) The amount of pensions and benefits, contributory or non-contributory, public or private, shall be calculated as income.

e) Income from the following will be exempt from the calculation:

1 Social wages, minimum insertion income or similar social assistance aid granted by the Autonomous Regions are excluded. 

2 The specifically aimed benefits and financial aid that have been granted to cover a specific need of any of the people who are members of the cohabitation unit, such as scholarships or study aid, housing aid, emergency aid, and similar aid.

3 The exempt income referred to in paragraphs (b), (c), (d), (i), (j), (n), (q), (r), (s), (t) and (y) of Article 7 of  Law 35/2006, of 28 November, on Personal Income Tax and the partial amendment of the laws on Corporate Tax, Non-Resident Income Tax and Inheritance Tax.

2. Calculating income will take into account income obtained by recipients during the year prior to the request. The amount of the benefit shall be reviewed each year taking into account the income information from the previous year. The tax criterion shall be used to determine which year the revenue was obtained.

3. For the determination of the monthly income of the persons who form the cohabitation unit, the total income of all members is computed, in accordance with the provisions of Law 35/2006, of 28 November, on Personal Income Tax and the partial amendment of the laws of the Corporate Tax, Non-Resident Income Tax and Inheritance Tax.

The income provided for in paragraph 1(e) shall not be calculated. The sum of income detailed above will subtract the amount of income tax and social contributions.

Exceptionally, and when they are not beneficiaries of unemployment benefits or subsidies, and for the exclusive purpose of calculating income, applications may be submitted until 31 December 2020 in cases of economic vulnerability that have occurred during the current year. In order to provisionally prove compliance with the income requirement, the proportional part of the income that the cohabitation unit has had during the time that has elapsed in the year 2020 shall be considered, provided that in the previous financial year it does not exceed half of the equity limits generally established for the aforementioned cohabitation units and whose income does not exceed by more than 50 percent the limits established for the entire cohabitation unit in the financial year 2019. In this case, the data on the social security files and databases that allow the verification of this situation, or, in their absence, what is contained in the responsible declaration, may be taken as a reference for income for 2020.

In any case, in 2021, the amounts paid will be regularised in relation to the monthly average data of the total income and computable annual income of the individual beneficiary or of all the members of the cohabitation unit, corresponding to the financial year 2020, giving rise, if applicable, to the reimbursement of the benefit.

1. The net assets of the single person or of the cohabitation unit shall be taken into account, which shall be determined by the sum of the net corporate assets plus the net non-corporate assets:
   1. The net company assets includes the value of the shares in the equity of companies in which any member of the cohabitation unit participates directly, with the exception of those valued within non-company assets
   2. Net non-corporate equity includes the value of non-corporate assets less any associated non-corporate liabilities.
      

   Non-company assets are the sum of the following:
   

   1. 1. 1. Real estate, excluding habitual residence.
         2. Bank accounts and deposits.
         3. Financial assets in the form of securities, insurance and income and shares in collective investment institutions.
         4. Shares in plans, pension funds and similar alternative systems.

      Non-corporate liabilities shall include debts and claims existing on non-corporate assets at the presentation date of the application, excluding those associated with the principal residence.
      
      
2. Non-company assets will be assessed accordingly with the following criteria:
   
   For each of the members of the cohabitation unit, the net company assets will be valued by applying the percentages of shares in the capital of companies not included in the non-company assets to the net asset value of those companies entered in the last tax returns for which the tax year has ended for all taxpayers.
   
   Residential real estate assets will be valued in accordance with the market reference value referred to in article 3.1 and the third final provision of the consolidated text of the Real Estate Cadastre Law, approved by Royal Legislative Decree 1/2004 , of 5 March, and, in the absence of this value, for the land value of the property.
   
   The remaining real estate assets, whether urban or rural, will be valued according to the land value of the property.
   
   Bank accounts and deposits, financial assets and shares, will be valued for their value as at 31 December entered in the last available information tax returns whose regulatory reporting period has ended at the time of filing the application.