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V1715-24 11 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Spouse's salary is deductible if they are an employee rather than self-employed

The owner of a veterinary clinic inquired whether the salary paid to their spouse for working in the business is tax-deductible. The Directorate General for Taxes (DGT) ruled that for the expense to be deductible, the spouse must be registered under the General Social Security Scheme or special schemes, rather than the Special Regime for Self-Employed Workers.

The question raised

Whether the salary paid to a spouse for the work performed in the activity is considered a deductible expense for Personal Income Tax (IRPF) purposes.

The DGT's ruling

To deduct the spouse's remuneration under the direct estimation method, the employment contract and affiliation with the General Regime or special Social Security regimes must be proven, rather than the self-employed regime. Remuneration must be consistent with market rates according to their qualifications. If Social Security does not permit affiliation with the General Regime and labor dependency is proven, the expense shall be deductible. In such a case, the amounts shall constitute income from employment for the recipient.

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