Alimony payments made for the support of children are amounts paid by parents, either set by a court or in an agreement approved by a judicial authority. For the child receiving the payments, alimony is considered tax-exempt income, so it is not subject to income tax.
Alimony payments you make for your children are not considered income for who pays it, so they are not added to your general taxable base. This means they do not increase the percentage of taxes anyone pays on their other income. They are calculated separately using special scales to account for the payments for tax purposes, without negatively affecting your regular Renta.
There are special rules depending on child custody:
- In shared custody, both parents apply the child minimum prorated.
- The parent who pays alimony without custody only applies the alimony regime, not the child minimum.
- A parent who contributes to child support without paying alimony or having custody can apply the child minimum, prorated with the parent who has custody.
Compensatory pensions are amounts that one spouse pays to the other after separation or divorce, provided they are court-ordered or agreed upon in a judge-approved agreement.
- For the payer, compensatory pensions reduce the general taxable base, without allowing it to become negative. Any remaining amount is applied to the savings base, also without going negative.
- For the recipient, the pension is considered employment income not subject to withholding, which means it must be included in their income tax return as taxable income, even if no tax was withheld.