How should a self-employed professional be deducted from health insurance?


If you work on your own, you will be informed of the deductible expenses for personal income tax that you can make, but did you know that you can deduct your autonomous health insurance? Many freelancers only deduct those expenses related to work activity, but in the next post from we are going to tell you everything you need to know so that you can take it into account in your next income tax return. Generic guidelines to deduct autonomous medical insurance

All self-employed workers know that a series of expenses can be deducted from their professional activity, such as the workers’ payroll, the social security contribution, or the establishment where the work activity is carried out.

But there is a series of expenses that the tax legislation allows us to include in this bag of expenses to be deducted, such as deducting the self-employed health insurance. This type of deduction has nothing to do with the work activity carried out by a self-employed person, so it is advisable to be well informed.

Article 30.2.5 of IRPF Law 35/2006 establishes that health insurance premiums may be deducted as an expense in the income statement of a self-employed person with a series of conditions and limits that we detail below:

Those premiums paid for their coverage as well as those of their spouse and children under 25 years of age who live at the same address may be deducted from the income statement of a self-employed person. Those who will not be able to enjoy this deduction are the partners of the self-employed who are not married even if they live at the same address.

The Law establishes a limit of 500 euros per year for each of the persons mentioned above or 1,500 euros for each of them with a degree of disability.

To deduct the self-employment medical insurance of a person who works on their own and who decides to take out private health insurance because the functions they perform in their work run a high percentage of risk, if it is questioned whether it can be deducted the self-employed medical insurance that you have contracted, you should know that it is possible, as long as you include your wife and two small children at the time of contracting the policy.

Assuming that the children do not have disabilities and live at the same address for the income statement, they will count as 500 euros. Therefore, it is a total of 2000 euros which can be deducted taking into account the previous section.

We are also going to tell you what other situations established within in which a self-employed person is immersed, apart from deducting self-employment health insurance, they can benefit or indicate it. as a deductible expense.

If the development of the economic activity affects the dwelling, the self-employed may deduct the percentage resulting from applying 30% to the part of the proportional expense of the square meters of the dwelling destined for the activity concerning its total area. .

To calculate the amount that can be deducted, you have to multiply the total payment for supplies, including internet and telephone, by 20%, which is the meters of the affected home. And the total will be multiplied in turn by 30%, which is what corresponds to the deduction.

According to ICEA (Cooperative Investigation between Insurance Entities and Pension Funds) around 28% of the self-employed have contracted health insurance, so it is advisable to find out well before making the income statement or for future declarations, since not all Self-employed people know that self-employment health insurance can be deducted, among other things.What is our tax treatment of health insurance?

Focusing on the taxation of our private medical insurance, to know how to deduct autonomous medical insurance, it is important to know the following characteristics depending on the territory in which you are:Implications of the self-employed 

Deductible expense in the calculation of the net income of the economic activity (in direct estimation).

The premiums are exempt from personal income tax and payment on account up to €500 person/year (self-employed, spouse and descendants).

The amounts that exceed the above limit will be remuneration in kind subject to personal income tax and payment on account.

The full amount of the premium constitutes the basis for the Social Security contribution (if there is an employment relationship).

No tax advantage for taxation in objective estimation (modules).Implications of the self-employed in the Basque Country

There is no tax advantage for contracting insurance policies whose policyholder is self-employed.Implications of the self-employed in the rest of the common territory

The premiums paid concerning its employees are exempt from personal income tax and payment on account of up to €500

person/year and €1,500 person/year in the event of disability.

The amounts that exceed the above limits will be remuneration in kind subject to personal income tax and payment on account.

The full amount of the premium constitutes the basis for the Social Security contribution (if there is an employment relationship).

They do not have a tax advantage for taxation in objective estimation.

The health insurance premiums paid by the self-employed person concerning himself, his spouse, and children under 25 years of age up to a maximum amount of €500 per year (€1,500 in the event of disability) are deductible for him as long as he is taxed indirect estimation.  Do you want to take out self-employed health insurance?

We hope that after reading the post on how to deduct your self-employment medical insurance, you will have clearer concepts to make the following income statement. And if you are looking for private health insurance for the self-employed, don’t hesitate to take a look at our promotions. health insurance offers for the self-employed have been created to adapt to your work and lifestyle. 

By aamritri

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