Doctrine by topic · DGT Observatory

Civil Liability Insurance: 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

Settled doctrine High confidence 17 rulings · 2014–2025

Current position

Civil liability insurance premiums are deductible expenses of the economic activity under the principle of correlation of income and expenses. If payment occurs after the cessation of the activity, they maintain their nature as an activity expense as long as they have not been previously deducted as provisions in Corporate Tax (IS). It is not considered remuneration in kind if the insurance does not individually designate the persons covered nor is it calculated according to their specific profile.

The DGT's position remains constant regarding the deductibility of premiums under the principle of correlation of income and expenses. It has been specified that payment after the cessation of the activity does not alter its nature as an economic activity expense. Likewise, it has been established that the absence of individualized designation of the insured prevents its classification as remuneration in kind.

Turning points

  1. V0868-17

    Establishes that there is no remuneration in kind when the insurance does not personally and individually designate the persons covered nor is it calculated according to their profile.

  2. V0177-18

    Confirms that premiums maintain their nature as economic activity expenses even if paid after cessation, due to the principle of correlation of income and expenses.

Analysis based on 17 of 17 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

17
V1831-20 8 Jun 2020

Heirs cannot deduct the deceased's professional indemnity insurance as a business expense

SG de Impuestos sobre la Renta de las Personas Físicas
rendimiento de actividades económicascorrelación de ingresos y gastosseguro de responsabilidad civilimputación temporalrectificación de autoliquidación LIRPF — Ley 35/2006 del IRPF art. 14.4LIRPF — Ley 35/2006 del IRPF art. 28.1
Affects CompanyExpat · Non-residentIndividual
V0476-16 8 Feb 2016

Professional association fees cannot be deducted without economic activity

SG de Impuestos sobre la Renta de las Personas Físicas
actividad económicarendimientos de actividades económicascuota colegialgasto deducibleseguro de responsabilidad civil LIRPF — Ley 35/2006 del IRPF art. 27LIRPF — Ley 35/2006 del IRPF art. 28.1
Affects CompanyExpat · Non-residentIndividual

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