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V2553-17 10 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Deductibility of subsistence, travel, and health insurance expenses in the course of economic activity

A professional decorator inquires whether subsistence and transport expenses in non-EU countries, as well as health insurance, are deductible. The DGT rules that these expenses are deductible provided they meet the requirements of correlation with income, substantiation, and record-keeping, and establishes the limits for health insurance.

The question raised

1) Whether subsistence and travel expenses incurred abroad may be deducted.

The DGT's ruling

Expenses for subsistence, transport, and hotels are deductible if they are required for the conduct of the economic activity, their link to income is proven, and they comply with the requirements for temporal imputation, recording, and justification. In the case of expenses in foreign currency, the spot exchange rate on the date of the transaction shall apply. Regarding health insurance, premiums for the coverage itself and for a spouse and children under 25 years of age living together are deductible, with a limit of 500 euros per person (or 1,500 euros if they have a disability).

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