The General Tax Directorate reminds that the self-employed must be the policyholder of the insurance to deduct the premium in IRPF. Paying from a personal account is not enough if the policy is in the name of the company.
The General Tax Directorate has made it clear that a self-employed individual cannot deduct health insurance premiums in the IRPF if the policyholder is their company, even if they pay the fees from their personal account. This clarification comes through binding consultation V1178-26, issued on May 20, 2026.
The case analysed is that of a professional under direct estimation who contracted health insurance for themselves and their spouse through a company of which they are a partner and administrator. The premiums were charged to their personal bank account, but the Tax Authority has rejected the deduction because the legal policyholder is the company, not the self-employed individual.
The Tax Authority's argument is based on Article 28 of the IRPF Law, which refers to the Corporate Tax regulations for calculating the net income of the activity. Article 30.2.5ª.a) of the same law allows the deduction of health insurance premiums but requires that the policyholder be the taxpayer who carries out the economic activity.
According to the consultation, it is not enough to be the beneficiary or to bear the expense. The policyholder is the person who assumes the legal obligation to pay the premium, according to the Insurance Contract Law. Therefore, if a company is listed on the policy, the deduction in the IRPF for the professional does not apply, even if the company is linked to them.
To correctly apply this deduction, the self-employed individual must meet several requirements: be under direct estimation, that the insured persons are themselves, their spouse, or children under 25 years living with them, and that the policy is in their name as the policyholder. The quantitative limits are 500 euros per year for each insured person, which increase to 1,500 euros if the person has a recognised disability.
A relevant technical detail is that the expense is only deductible in the year it is paid. The rule is the same for both normal and simplified direct estimation. What the Tax Authority does not accept is that the taxpayer attempts to deduct the premium simply by claiming that the money came from their pocket.
The Tax Authority does not look at who pays the premium, but who appears as the policyholder under the Insurance Contract Law.
Many self-employed individuals take out health insurance through their company to obtain better conditions, but forget to check who is listed as the policyholder. If it is the company, they cannot deduct anything in the IRPF. This incorrectly declared expense can lead to a regularisation with surcharges and late payment interest when the Tax Authority cross-checks data during an audit.
The minimum penalty for failing to pay can reach 50% of the unpaid amount, in addition to interest. To avoid this, the solution is simple: change the policy to the name of the self-employed individual as the policyholder, maintaining the same coverage. Insurers usually allow this change as long as the new policyholder assumes the payment. It is advisable to make this change before the end of the year to be able to deduct the expense in the next IRPF declaration.
Consultation V1178-26 does not introduce a new criterion. As early as 2005, consultation V2496-05 established that the policyholder must be the taxpayer. However, many advisors and self-employed individuals continued to interpret that it was sufficient to be the payer. This new resolution serves as a wake-up call for those who still followed that practice.
The doctrine is consistent with the principle that the expense must be linked to the activity. The personal health insurance of the self-employed individual is understood as a necessary expense to protect their ability to generate income. But if the contract is signed by a company, the link is broken: it is the company that has the right and obligation, and the self-employed individual only benefits indirectly. In that case, the company could deduct the insurance as a corporate expense, but then the self-employed individual would receive a benefit in kind that would be taxed as employment income.
For any self-employed individual who has health insurance contracted through their company, it is advisable to review the policy as soon as possible. If the policyholder is not themselves, they should request the change from the insurer to avoid losing the tax deduction. This management, although simple, can result in significant savings on the IRPF declaration and avoid problems with the Tax Agency.
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