Doctrine by topic · DGT Observatory

Insurance Premium: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Refined position Medium confidence 19 rulings · 2014–2025

Current position

Benefits for illness or disability are classified as capital gains included in the general tax base, after deducting the premiums of the current year. The rebilling of insurance premiums to third parties is an operation exempt from IVA (Value Added Tax) as long as the exact cost is transferred without modifications. In the scope of IRPF (Personal Income Tax), accident insurance premiums that cover risks unrelated to professional activity or include family members are considered benefits in kind.

The DGT's position shows thematic fragmentation without a single evolutionary line, addressing aspects of IVA, IRPF, and returns on capital. Precision is observed in the classification of benefits, moving from considering them as returns on movable capital in 2019 to capital gains in 2025. Likewise, the concept of benefits in kind for accident insurance has been strictly delimited.

Turning points

  1. V1898-19

    Classifies the disability benefit as a return on movable capital in the savings tax base.

  2. V2236-25

    Changes the classification of the illness benefit to a capital gain included in the general tax base.

Analysis based on 19 of 19 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

19
V2236-25 24 Nov 2025

Insurance payout for serious illnesses treated as patrimonial gain

SG de Tributación de las Operaciones Financieras
ganancia patrimonialrendimientos del capital mobiliarioseguro de enfermedadesbase imponible generalprima de seguro LIRPF — Ley 35/2006 del IRPF art. 17.2.aLIRPF — Ley 35/2006 del IRPF art. 25.3.a
Affects CompanyExpat · Non-residentIndividual
V1567-24 26 Jun 2024

Insurance payouts for illness taxed as capital gains for Income Tax purposes

SG de Tributación de las Operaciones Financieras
ganancia patrimonialrendimientos del capital mobiliarioprestación de segurobase imponible generalprima de seguro LIRPF — Ley 35/2006 del IRPF art. 17.2.aLIRPF — Ley 35/2006 del IRPF art. 25.3.a
Affects CompanyExpat · Non-residentIndividual
V1289-21 7 May 2021

Payout from critical illness insurance is taxed as a capital gain

SG de Tributación de las Operaciones Financieras
ganancia patrimonialrendimientos del capital mobiliarioseguro de enfermedad gravebase imponible generalprima de seguro LIRPF — Ley 35/2006 del IRPF art. 16.2.aLIRPF — Ley 35/2006 del IRPF art. 25.3.a
Affects CompanyExpat · Non-residentIndividual
V1664-17 27 Jun 2017

Life insurance premiums may be deductible if required for a mortgage loan

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por inversión en vivienda habitualseguro de vidapréstamo hipotecariobase de deduccióngastos de financiación LIRPF — Ley 35/2006 del IRPF art. 68.1LIRPF — Ley 35/2006 del IRPF art. 70
Affects CompanyExpat · Non-residentIndividual

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