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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
An employee inquired whether medical insurance premiums paid by their company for themselves and their family are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that the exemption only applies to the portion assumed by the company as agreed benefits in kind, and not to the portion deducted from the employee's salary.
This clarification limits the tax exemption for health insurance benefits, ensuring that only the employer's contribution is treated as a non-taxable benefit in kind, while any employee-funded portion remains subject to taxation.
The tax team reviews your specific situation.
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