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V1775-24 17 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos en especie

Employer-paid health insurance premiums are exempt up to €500 per person annually

An unemployed worker inquired whether health insurance premiums paid by her former employer are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) clarified that an exemption applies up to €500 per beneficiary annually and explained how to file a corrective tax return.

The question raised

Application of the exemption provided for in Article 42.3.c) of Law 35/2006 to health insurance premiums. If affirmative, the procedure to rectify the 2022 Personal Income Tax (IRPF) return.

The DGT's ruling

Health insurance premiums paid by the entity for the employee, their spouse, or descendants are not taxed as benefits in kind up to a limit of 500 euros per person annually (or 1,500 euros if they have a disability). The excess over these amounts is considered income in kind from employment, valued at its cost to the payer. To rectify the tax return, a corrective tax return must be submitted using the corresponding form.

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