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V1777-24 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 individual inquired whether health insurance premiums continued to be paid by their former employer are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) clarified that these premiums are not taxed as benefits in kind, provided they do not exceed €500 per beneficiary per year.

The question raised

Application of the exemption provided for in Article 42.3.c) of Law 35/2006 to health insurance premiums.

The DGT's ruling

Health insurance premiums paid by the company are exempt if the coverage extends to the employee, spouse, or descendants. The exemption limit is 500 euros per year per person, or 1,500 euros if they have a disability. The excess over these limits is considered in-kind employment income and must be valued at its cost to the company.

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