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V0602-20 30 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Health insurance premiums may be deducted as professional expenses subject to certain limits

A self-employed professional has enquired whether they can apply reductions to their taxable base for life and health insurance policies. The Directorate General for Taxes (DGT) indicates that there are no reductions to the taxable base for these concepts; however, it allows health insurance premiums to be deducted as a professional expense.

The question raised

Whether any reduction in the tax base may be applied for the insurance policies contracted.

The DGT's ruling

There are no reductions in the tax base for the life or health insurance queried. However, health insurance premiums are deductible as an expense for determining net income under the direct estimation method. The deduction limit is 500 euros for the taxpayer themselves, spouse, and children under 25 years of age living with them, or 1,500 euros if they have a disability.

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