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V0358-23 21 February 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

US health payments may be deductible IRPF expenses if linked to declared work

A Spanish resident working remotely for a US company asks whether US health insurance deductions can be deducted. The DGT responds that such contributions may be deductible if considered equivalent to Social Security and linked to declared work in Spain.

The question raised

Question posed In the event that the consultant is a tax resident in Spain during the 2022 tax period (due to having their habitual residence in Spain), to know:

The DGT's ruling

Monthly salary income from a US company constitutes earned income pursuant to Article 17.1 of the Personal Income Tax Act (LIRPF). Contributions to foreign public social security systems are considered deductible expenses if they are equivalent to the Spanish Social Security system. For the payment to be deductible, it must be directly linked to the gross income obtained from work performed in Spain and subject to Personal Income Tax (IRPF).

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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