STATEMENT: The deductions of medical insurance in Income 2022-2023

Madrid, May 3, 2023.

Before making the IRPF Tax declaration with the income for the year 2022, it is interesting to know which items can be deducted and which affect each household. www.todosegurosmedicos.com, an expert in health policies, helps to save by explaining in which cases health insurance can be deducted

The Tax Agency's 2023 Income campaign ends on June 30, 2023, although if the payment is to be direct debited, the deadline ends on June 27. Medical insurance is one of the policies that can be deducted this year in the Personal Income Tax (IRPF) declaration in some cases. The Public Health model in Spain is considered one of the best in the world. However, health insurance in the country has grown by more than a million patients in just three years, from 2019 to 2021, according to data provided by the Spanish Union of Insurance and Reinsurance Entities (Unespa). The good news is that the self-employed, companies and workers with collective medical insurance can deduct this policy in this year's income statement. The self-employed: the policy is deducted directly from income In Spain, personal income tax is a tax progressive, that is, a higher percentage is applied the larger the tax base. If more money has been earned, the Tax Agency will keep a higher percentage. So it is very interesting that the self-employed can reduce their household health insurance directly from their total income. The maximum amount is €500 for each family member (the self-employed worker, their spouse and children under 25 years of age). that do not exceed a minimum income). The amount rises to €1,500 if any family member has a recognized disability. In any case, the total discount may not exceed €4,500. You can deduct it in one go, by including it in the annual income statement, or include it in the IRPF installment payments, with model 130 that is completed quarterly. Company medical insurance benefits the company and the worker 1. The company. 100% of the expense they make in the group medical insurance of their employees can be deducted in the corporation tax. Corporate tax is also progressive, it grows based on profits, so subtracting the cost of the premiums helps them pay less tax. Including this job advantage in the salary also helps to attract and keep talent, compared to other competing companies that do not offer it.2. The worker. You do not have to add the tax to your personal income tax earnings, since the policy is exempt from taxation as it is not considered work income. For this reason, many employees negotiate with their company to include this type of flexible remuneration instead of a salary increase that would mean paying more than personal income tax. The tax-exempt limit is €500 per person and year. If the quota exceeds that amount, the first 500 would be exempt and the rest would be taxed as income from work in kind. The quotas of the spouse and cohabiting children under 25 years of age can also be included, always with a limit of €500 per person and only if they are included in the company's policy. The total deductible amount cannot exceed €4,500. In order for workers to enjoy the deduction, the health policy must appear as part of their remuneration, that is, together with their salary on the payroll. In summary: Medical insurance deducts , so in reality, its real cost is lower. The monthly fee of the policy reverts after less is paid in the income statement, or even goes out to return. It is a private healthcare without waiting lists with great tax advantages. Anyone who still has doubts on the subject can request expert advice free of charge and without obligation, by calling 912 182 186 and 932 990 416. This exclusive online health insurance comparator is also a great option to find out about prices and coverage at the moment. up to 50 different insurers. www.todosegurosmedicos.com is a website of Globalfinanz, leader in the sale of health and life insurance over the internet, with more than 40,000 clients and agreements with more than 60 insurance groups.

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