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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A civil servant inquired whether allowances to cover physiotherapy, dental, or optical expenses are subject to Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that they are not taxable, provided they are intended for health restoration and are not covered by the Health Service or mutual insurance.
This ruling clarifies the tax-exempt status of specific health-related reimbursements for employees, reducing the tax burden for those covering essential medical costs privately.
The tax team reviews your specific situation.
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