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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
An employee inquired whether direct payments made by a company to a nursery for childcare expenses are exempt from Personal Income Tax (IRPF). The Directorate General for Tax (DGT) ruled that if such payment is established as a benefit in kind within the employment contract or collective agreement, the exemption applies.
This ruling clarifies the tax treatment of childcare benefits, providing certainty for companies and employees regarding the tax-exempt status of nursery costs when structured correctly as benefits in kind.
The tax team reviews your specific situation.
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