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V0075-21 22 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Private medical expenses cannot be deducted as business expenses for Personal Income Tax (IRPF)

A taxpayer engaged in an economic activity inquired whether private healthcare expenses could be deducted. The Directorate General of Taxes (DGT) ruled that they are not deductible as they are not linked to the performance of the activity.

The question raised

Deductibility of such expenses in the determination of the net income of their economic activity for Personal Income Tax purposes.

The DGT's ruling

The deductibility of expenses requires proof that they were incurred in the course of the activity and are necessary for the generation of income. Personal medical expenses are not deductible as they relate to the health of the taxpayer and not to the development of their economic activity.

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