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V0063-24 ·15 February 2024 ·consulta-vinculante Medium impact
Tax

Company-paid health insurance premiums following collective redundancies are exempt up to €500 per person per year

A worker inquired whether health insurance premiums paid by their former employer following a collective redundancy are tax-exempt. The Directorate General for Taxes (DGT) ruled that these premiums do not constitute employment income, provided they do not exceed the established legal limits.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment of health insurance benefits provided to redundant employees, confirming that such benefits are exempt from income tax up to a specific annual threshold per person.

Lifecycle

2024-02-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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