With the start of the Income Tax campaign, one of the most frequent doubts revolves around insurance. Home, car or health can be included in the declaration, but only in very specific situations. Not all taxpayers can benefit from these deductions, as the Tax Agency establishes clear requirements depending on the type of insurance and its use.
Car insurance: only if you are self-employed and use it for work
Car insurance can only be deducted if the vehicle is linked to a professional activity. That is to say, it is limited to self-employed individuals.
This includes cases such as:
- Goods transport
- Passenger transport (as professional drivers)
- Driving school vehicles
- Commercial or professional use
In these cases, the expense can be included in the declaration within the corresponding deductions.
Health insurance: who can include it in the declaration
Health insurance does offer more options, although also with conditions.
They can deduct it:
- Self-employed individuals who have taken out private insurance and include it in their accounting
- Employees who have it through their company as flexible remuneration
- In this second case, it is essential that the insurance is contracted by the company, not individually.
Home insurance: in which cases the Treasury allows deduction
Home insurance is one of the most limited in terms of deductions. It can be deducted in these cases:
- Homes with a mortgage signed before 2013, provided it is the habitual residence and the original insurance is maintained
- Rental homes, as they generate income
- Self-employed individuals who work from home
Outside of these assumptions, home insurance does not allow a deduction in the Income Tax.
The key detail that makes the difference in the statement
The key is in justifying the use of the insurance and its relationship with an economic activity or with returns. Without that link, Hacienda does not allow applying any deduction, even if the expense exists.