Self-employed in Spain: can you deduct your private health insurance?

If you are self-employed (autónomo) in Spain and pay for private health insurance, you may be able to deduct part of it from your taxable business income. Here is how it works, in plain English.

The short answer: up to €500 per person per year

Under Spain's personal income tax law (Ley del IRPF, art. 30.2, rule 5), an autónomo using direct estimation (estimación directa, the normal or simplified regime) can deduct health insurance premiums paid for:

• Themselves.

• Their spouse.

• Their children under 25 who live with them.

The cap is €500 per person per year, or €1,500 for each person with a disability. It is a ceiling, not a fixed amount: if a premium costs €420 a year, you deduct €420.

A quick example

A self-employed person with a partner and two children (aged 12 and 17), all on one policy. If each person's yearly premium is above €500, the maximum deductible expense is 4 × €500 = €2,000. That reduces the net income of the business; the tax actually saved depends on your marginal rate. Your gestor can give you the exact figure.

Conditions to check

• Direct estimation regime. If you are under módulos (estimación objetiva), ask your gestor.

• You pay the premium yourself.

• Children must be under 25 and live with you.

• Keep the paperwork: policy and payment receipts.

• Parents are not included, nor children over 25.

Not the same for companies and employees

This rule is for the self-employed individual. If you run a company or want to offer health cover to staff, different rules apply. See also our Spanish guide on company group health insurance.

Choosing a policy

Before the tax angle, decide between a network-based policy (cuadro médico) and a reimbursement policy (reembolso, where you pick any doctor and are refunded part of the cost). With Allianz Salud, reimbursement comes in three levels (Basic, Medium and Complete) with annual limits of €110,000, €120,000 and €200,000, and the complete plans include dental cover with 78 treatments at no cost. For the wider picture, read healthcare in Spain for expats: public vs private and our guide for foreigners working as autónomos in Spain.

FAQ

How much can a self-employed person deduct for health insurance in Spain? Up to €500 a year per person (€1,500 with a disability), for themselves, their spouse and children under 25 living with them.

Can I deduct my parents' policy? No.

What if I am under módulos? The rule refers to direct estimation; check with your gestor.

How we can help

AMB Seguros is an exclusive Allianz agency in central Murcia. We help English-speaking residents choose a health policy in person or online by WhatsApp or video call. See our health insurance page or contact us.

This article is informational and not tax advice. Confirm your situation with your gestor.