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A self-employed individual inquired whether premiums for new temporary sickness incapacity insurance are deductible expenses or subject to the €500 limit applicable to health insurance. The Directorate General for Taxes (DGT) ruled that, as it covers a transitory pathological condition rather than permanent disability, it is classified as health insurance.
This ruling clarifies the tax treatment of incapacity insurance for the self-employed, confirming it falls under the specific €500 deduction limit for health insurance rather than general deductible business expenses.
The tax team reviews your specific situation.
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