2016 is a good year for independent workers and businesses to obtain tax savings on their Health insurance thanks to modifications to the State Budget. Spain has one of the best Social Security systems in the world, but recent uncertainties and the benefits of private Health have spurred these kinds of policies.
Freelancers and liberal professionals cannot afford to get ill, because as the saying goes, “no bees no honey; no work no money”; so health insurance can be a valuable ally.
How does an independent worker pay less tax with Health insurance?
It is a deductible expense for independent workers and their family, including spouse and children under 25. Each member can deduct up to €500, with a maximum of €4,500 for the family unit.
How do businesses deduct it?
When a business protects its workers with private Health insurance it has a direct impact on their corporate tax, as it is considered a social expense, and can be deducted directly from the company’s profits, leading to a tax savings.
Furthermore, the workers would only have to declare it in their tax filing when the insurance exceeds €500.
What about private citizens?
Besides the benefits of having Health insurance for you and your family, deductions also apply for private citizens in certain Spanish regions such as Cantabria, Aragon and the Balearic Islands.
Despite the savings, what is most important is your health, doing away with waiting times, being able to choose a specialist, getting a second opinion…
And, if your policy also provides tax benefits, better yet! But find out beforehand with our brokers. Each case is different and our specialists will analyse yours with you.