Doctrine by topic · DGT Observatory

Health 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 11 rulings · 2015–2024

Current position

Health insurance is an exempt benefit in kind as long as the company is the policyholder and the provision is agreed upon in the employment contract or collective bargaining agreement. If the company only acts as a payment intermediary for an amount so that the worker covers the expense, it is considered monetary remuneration and the exemption under article 42.3.c) of the LIRPF (Personal Income Tax Law) does not apply. The exemption is limited to 500 euros per year per person, or 1,500 euros if there is a disability.

The DGT's position remains constant regarding the application of exemption limits and the necessity of an employment relationship. The evolution focuses on the technical distinction between benefit in kind (company as policyholder) and monetary remuneration (payment mediation), a criterion that has been reaffirmed in the most recent rulings.

Turning points

20 February 2023 V0320-23

Establishes the distinction between benefit in kind and monetary remuneration depending on whether the company is the policyholder or merely a payment intermediary.

Analysis based on 11 of 11 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

11

V0679-24 15 Apr 2024

Employer-paid health insurance: exempt benefit in kind or cash income depending on its origin

SG de Impuestos sobre la Renta de las Personas Físicas

retribución en especieexencióntomador del seguromediación de pagorendimientos del trabajo LIRPF — Ley 35/2006 del IRPF art. 42.1LIRPF — Ley 35/2006 del IRPF art. 42.3.c

Affects CompanyExpat · Non-residentIndividual

V0320-23 20 Feb 2023

Company-paid medical insurance via payroll deduction may qualify as exempt benefits in kind

SG de Impuestos sobre la Renta de las Personas Físicas

retribución en especieexencióntomador del seguromediación de pagorendimientos del trabajo LIRPF — Ley 35/2006 del IRPF art. 42.1LIRPF — Ley 35/2006 del IRPF art. 42.3.c

Affects CompanyExpat · Non-residentIndividual

V1271-21 6 May 2021

Company payment for an employee's private medical insurance is not an exempt benefit in kind

SG de Impuestos sobre la Renta de las Personas Físicas

retribución en especieretribución dinerariamediación de pagoseguro médicoexención LIRPF — Ley 35/2006 del IRPF art. 42.1LIRPF — Ley 35/2006 del IRPF art. 42.3.c

Affects CompanyExpat · Non-residentIndividual

V1653-20 28 May 2020

30% reduction does not apply if income (severance and medical insurance) is not attributed to a single tax period

SG de Impuestos sobre la Renta de las Personas Físicas

rendimientos del trabajoreducción por irregularidadextinción de la relación laboralmutuo acuerdoperiodo impositivo LIRPF — Ley 35/2006 del IRPF art. 18.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12.1.f

Affects CompanyExpat · Non-residentIndividual

V0772-20 7 Apr 2020

Exemption for meal vouchers and health insurance requires an employment relationship

SG de Impuestos sobre la Renta de las Personas Físicas

rendimientos del trabajo en especietickets restauranteseguro médicorelación laboralexención LIRPF — Ley 35/2006 del IRPF art. 42.3.aLIRPF — Ley 35/2006 del IRPF art. 42.3.c

Affects CompanyExpat · Non-residentIndividual

V0735-20 6 Apr 2020

Medical insurance exemption does not apply if the full cost is passed on to the employee

SG de Impuestos sobre la Renta de las Personas Físicas

rentas en especieseguro médicoexenciónrendimiento del trabajopóliza colectiva LIRPF — Ley 35/2006 del IRPF art. 42.1LIRPF — Ley 35/2006 del IRPF art. 42.3.c

Affects CompanyExpat · Non-residentIndividual

V0702-20 3 Apr 2020

Possibility of claiming exemption for foreign work for in-kind remuneration

SG de Impuestos sobre la Renta de las Personas Físicas

rentas exentasretribución en especietrabajos en el extranjeroseguro médicoretenciones LIRPF — Ley 35/2006 del IRPF art. 7.pRIRPF — RD 439/2007, Reglamento del IRPF art. 42.1

Affects CompanyExpat · Non-residentIndividual

V1890-17 18 Jul 2017

Company-paid health insurance is considered benefits in kind if legal limits are exceeded

SG de Impuestos sobre la Renta de las Personas Físicas

retribución en especieseguro médicoexenciónrendimientos del trabajoprimas de seguro LIRPF — Ley 35/2006 del IRPF art. 42.3

Affects CompanyExpat · Non-residentIndividual

V3169-15 20 Oct 2015

Salary deduction for medical insurance not considered species remuneration

SG de Impuestos sobre la Renta de las Personas Físicas

retribución en especiemediación de pagorendimientos del trabajoexenciónseguro médico LIRPF — Ley 35/2006 del IRPF art. 42.1LIRPF — Ley 35/2006 del IRPF art. 42.2.f

Affects CompanyExpat · Non-residentIndividual

V1763-15 3 Jun 2015

Payment of medical insurance to a partner-administrator may be a deductible expense for Corporate Tax

SG de Impuestos sobre las Personas Jurídicas

gasto deducibleseguro médicosocia-administradoraretribucióncorrelación de ingresos y gastos LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11

Affects CompanyExpat · Non-residentIndividual

V1130-15 13 Apr 2015

Insurance premium reimbursement deemed cash remuneration

SG de Impuestos sobre la Renta de las Personas Físicas

rendimientos del trabajoretribución en especieretribución dinerariareembolsoseguro médico LIRPF — Ley 35/2006 del IRPF art. 17LIRPF — Ley 35/2006 del IRPF art. 42.1

Affects CompanyExpat · Non-residentIndividual

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