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V2536-14 30 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del trabajo

Deductible EU social security payments linked to employment income

The DGT confirms that social security contributions from another EU country are deductible in personal income tax if linked to employment income taxable in Spain.

The question raised

Whether the expenses for Social Security contributions to another Member State of the European Union, other than Spain, incurred for work performed in that country, are deductible.

The DGT's ruling

Social Security contributions to another Member State of the European Union are considered a deductible expense if the applicable legislation requires contributions in said State for the work performed and if such contributions are directly linked to the gross income subject to Personal Income Tax (IRPF). These contributions may be accounted for whether the foreign employment income is subject to tax and not exempt, or whether it is exempt pursuant to the application of Article 7 p) of the Personal Income Tax Law (LIRPF).

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