Skip to content
Back to index
V0476-16 8 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · actividad económica

Professional association fees cannot be deducted without economic activity

A query was raised regarding whether retired members of professional associations who do not practice can deduct their membership fees as an expense. The Directorate General for Taxes (DGT) ruled that this is not possible because, in the absence of economic activity, there are no earnings to offset through expenses.

The question raised

Consideration of professional association fees as a tax-deductible expense for Personal Income Tax purposes.

The DGT's ruling

For an expense to be deductible for Personal Income Tax purposes, an economic activity yield must exist pursuant to Article 27 of the Personal Income Tax Law. As no economic activity is being carried out, professional association fees cannot be considered expenses, even if their payment allows access to more affordable civil liability insurance premiums.

Book your free first meeting