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V1675-25 16 September 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Primes of civil liability insurance can be deducted after cessation of professional activity

An architect asks whether she can deduct civil liability insurance premiums after leaving her profession. The DGT responds that, as a consequence of carrying out this activity, the expense retains its nature and is deductible.

The question raised

Whether, following the cessation, the consultant may deduct the amount of the premium paid for the aforementioned civil liability insurance in Personal Income Tax.

The DGT's ruling

Expenses for civil liability insurance premiums following the cessation of activity maintain their nature as business activity expenses, as their payment is a consequence of the exercise thereof. Their deductibility is subject to the principle of correlation between income and expenses and to the condition that they have not been subject to deduction through provisions for risks in Corporate Tax. As she is not exercising an activity, the consultant has no formal business obligations such as registration books or installment payments.

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