Contributions to the special agreement with Social Security are deductible for Personal Income Tax (IRPF)

Natural persons who maintain their link to Social Security through a special agreement have a right to a deduction in their tax return. The Dirección General de Tributos (DGT) has confirmed that these contributions should not be considered a non-deductible expense, but rather an element that reduces net employment income.

What the DGT has ruled

The advisory body has determined that contributions made within the framework of a special agreement with Social Security are considered deductible expenses when calculating net employment income. This criterion is based on Article 19.2 of Law 35/2006 on Personal Income Tax (IRPF).

The resolution establishes that the subscriber of the agreement is in a situation assimilated to being registered in the General Social Security Regime. Since the contributions are mandatory to maintain benefit rights, they meet the necessary requirements for tax application. This treatment is valid whether the taxpayer files an individual return or opts for a joint return.

What this means for you

If you are a worker who, due to various circumstances, has opted to enter into a special agreement to avoid losing social benefit rights, these fees directly impact your tax burden. Being deductible, the total amount of contributions paid during the fiscal year reduces the net income upon which the tax is calculated.

This scenario is of particular relevance for those profiles who have had periods of inactivity or who reside abroad but maintain their coverage through this mechanism. The deduction does not depend on the chosen taxation method, ensuring uniform treatment for all subscribers of the agreement.

What you should do

It is necessary to verify that the paid fees are correctly included in the tax return as deductible expenses from employment income. Since the applicable regulations include Law 35/2006 and RD 439/2007, it is essential to have the Social Security payment receipts to prove the expense in the event of an inspection.

Each personal situation may present different nuances in the application of the regulations, so it is recommended to assess your particular case to ensure that the deduction is applied correctly in your tax form.