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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A taxpayer inquired whether they could deduct the salary paid to their spouse as a business expense. The Directorate General for Taxes (DGT) ruled that this is permissible provided there is a formal employment contract, registration with the relevant Social Security scheme, and the salary is consistent with market rates.
This ruling clarifies the conditions under which family members' remuneration can be treated as a legitimate business expense, emphasizing the need for formal documentation and market-rate compliance to avoid tax scrutiny.
The tax team reviews your specific situation.
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