The General Tax Directorate confirms that a dentist can benefit from a 20% reduction in income tax for starting a business, even if they work in the same clinic where they were employed, provided their income comes from their own patients.
The General Tax Directorate has issued a binding consultation that clarifies a recurring doubt among healthcare professionals who venture into self-employment. A dentist who began working as a self-employed individual on January 1, 2025, can apply the 20% start-up reduction on positive net income, even if they perform their work in the same dental clinic where they previously worked as their father's employee.
The Requirements for the Start-up Reduction
The start-up reduction, outlined in Article 32.3 of the Income Tax Law, is designed for those who are genuinely starting an economic activity. To qualify, the taxpayer must not have engaged in any economic activity in the year immediately prior. In this case, the dentist worked as an employee between 2022 and 2024, thus meeting the first requirement.
The second requirement aims to prevent legal fraud: the reduction cannot be applied if more than 50% of the income in the first year comes from a person or entity from which the taxpayer received employment income in the previous year. The dentist invoices directly to their patients, not to the clinic or their father, so they also meet this condition.
The maximum limit of net income on which to apply the reduction is 100,000 euros annually. The reduction is applied in the first tax period in which the net income is positive and in the following one.
Family Ties and Workplace Location Are Not an Obstacle
The tax administration emphasizes that neither working in the same establishment where there was a previous employment relationship nor the family connection with the clinic owner alone prevents access to the tax benefit. What matters is the source of the income: if it comes from the patients themselves and not from the former employer, the reduction is applicable.
This interpretation opens the door for other professionals, such as physiotherapists, psychologists, or nutritionists, to set up independently in the same facilities where they worked as employees without losing the tax incentive, as long as they meet the requirements.
The consultation, identified with the number V0761-26, dated April 6, 2026, analyses the case in detail and concludes that there is a genuine start of activity, as the taxpayer transitioned from being an employee to self-employed with their own patients.
What This Resolution Means for the Reader
For professionals considering the leap to self-employment, this resolution offers legal certainty. It is not necessary to change location or sever ties with the former employer to benefit from the reduction. The essential factor is that the income comes from their own clients and not from the previous boss or company.
The tax savings can be significant: on a net income of, for example, 50,000 euros, the 20% reduction means not having to pay tax on 10,000 euros, which in income tax can translate to savings of several thousand euros, depending on the marginal rate.
Professionals who start their activity in 2026 and meet the requirements will be able to apply the reduction in their income tax return for 2026 and 2027. It is advisable to keep invoices and contracts that prove the income comes from their own patients, not from the clinic or family members.
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