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V0063-24 15 February 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos en especie

Company-paid health insurance premiums following collective redundancies are exempt up to €500 per person per year

A worker inquired whether health insurance premiums paid by their former employer following a collective redundancy are tax-exempt. The Directorate General for Taxes (DGT) ruled that these premiums do not constitute employment income, provided they do not exceed the established legal limits.

The question raised

Application of the exemption provided for in Article 42.3.c) of Law 35/2006 to health insurance premiums.

The DGT's ruling

Premiums paid by the entity for health coverage for the employee, their spouse, and descendants are not considered employment income, provided they do not exceed 500 euros annually per person (or 1,500 euros if they have a disability). The amount exceeding these limits is considered income in kind and shall be valued at the cost to the payer.

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