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V2366-25 4 December 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Company-paid illness insurance premiums may be exempted income or payment mediation

An employee asks whether company-paid illness insurance for themselves and their children constitutes exempted remuneration. The DGT states that company-paid premiums constitute exempted remuneration if agreed, while amounts deducted from the employee's net salary constitute payment mediation.

The question raised

Application of Article 42.3.c) of Law 35/2006.

The DGT's ruling

Health insurance premiums paid by the company for the employee and part of those for their children constitute tax-exempt benefits in kind if they are stipulated in the contract or collective agreement and do not exceed legal limits. The portion of the children's premium that the company deducts from the employee's net salary is not a benefit in kind, but rather a mediation of payment of monetary earnings.

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