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V0112-22 24 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · seguro de dependencia

Benefits from German public long-term care insurance may be exempt from Income Tax

An individual receives a monthly benefit from a mandatory long-term care insurance scheme in Germany. The Directorate General for Tax (DGT) examines whether such benefits should be subject to Spanish Income Tax.

The question raised

Whether the benefit received from care insurance must be declared.

The DGT's ruling

The provision of the German social security system enjoys an exemption from Personal Income Tax (IRPF) if two conditions are met: that the degree of dependency is comparable to the Spanish system and that the content or purpose of the benefit is similar. The taxpayer must prove such comparability through means of evidence admitted in Law. The DGT does not determine whether such comparability exists as it is not competent in matters of dependency.

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