Expenses of the owner of the activity

Social security or contributions to alternative mutual funds of the activity holder

This includes contributions made by the activity holder to the Special Regime for Self-Employed Workers (RETA) or, where applicable, contributions made by the activity holder to Social Security Mutual Societies when they act as alternatives to the aforementioned special Social Security regime.

Specialties in the Personal Income Tax of contributions to Mutual Benefit Societies Social of the entrepreneur or professional himself

Regulations (Art. 30.2.1 Personal Income Tax Law)

As a general rule, contributions to social security mutual funds of the entrepreneur or professional do not constitute a deductible expense for determining the net income of the activity, given that they may reduce the taxpayer's tax base in accordance with the requirements and limits established for this purpose.

See Chapter 13 for reductions for contributions and contributions to social security systems .

However, amounts paid under insurance contracts entered into with mutual insurance companies by professionals not included in the special Social Security regime for self-employed workers or freelancers are considered deductible expenses of the activity when, for the purposes of complying with the obligation provided for in the Fifteenth Additional Provision of Law 30/1995, of November 8, on the Regulation and Supervision of Private Insurance, they act as alternatives to the special Social Security regime, in the part that aims to cover contingencies attended to by said special regime, with the limit of the maximum quota for common contingencies that is established in each financial year.

The fifteenth Additional Provision of Law 30/1995 has been repealed by Royal Legislative Decree 8/2015, of October 30, which approves the consolidated text of the General Law on Social Security, and integrated into the eighteenth Additional Provision of said consolidated text. Therefore, the reference made to the repealed provision shall be understood as being made to the corresponding provision of the consolidated text.

Furthermore, for the purposes of the limit of the maximum contribution for common contingencies established in each financial year, it must be taken into account that, for 2019, the contribution for common contingencies in the RETA is regulated by article 15 of Order TMS/83/2019, of January 31, which develops the legal regulations for contributions to Social Security, unemployment, protection for cessation of activity, Wage Guarantee Fund and vocational training for the year 2019 (BOE of February 2) which establishes a maximum contribution base of 4,070.10 euros per month and, in accordance with the provisions of the aforementioned article 15, the maximum contribution rate for common contingencies is 28.30 percent. Therefore, the maximum fee for common contingencies in 2019 is 13,822.06 euros [0.283 x (4,070.10 x 12)].

When contributions exceed this limit, the excess may be subject to a reduction in the personal income tax base, although only in the part that is intended to cover the same contingencies as pension plans and with the limits and requirements indicated in Chapter 13 in the section corresponding to "Reductions for contributions and contributions to social security systems."

Maintenance expenses of the taxpayer himself incurred in the development of the economic activity

Regulations: Art. 30.2.5.c) Personal Income Tax Law

Taxpayers may deduct maintenance expenses that meet the following requirements for determining the net income from economic activity in direct estimation:

That they are expenses of the taxpayer himself.
That are carried out in the development of economic activity. That is, they are specific to the activity.
That they occur in catering and hospitality establishments.
That they are paid using any electronic means of payment.

That they do not exceed the quantitative limits established by regulation in article 9.A.3.a) of the Personal Income Tax Regulations for allowances and allowances for normal maintenance expenses of workers. These limits are:

Information	Spain	Foreign
^(*) It must be a municipality other than the taxpayer's usual place of work and the one that constitutes his residence..⁽^Back⁾
Spending the night in a different municipality ^(*)	53.34 euros/day	91.35 euros/day
Without spending the night in a different municipality	26.67 euros/day	48.08 euros/day

Any excess over these amounts may not be deducted.

Precision: The reference made by the Personal Income Tax Law for the maintenance expenses of entrepreneurs or professionals to the regulatory regulation established for the per diems and allowances for normal maintenance expenses of workers, contained in article 9 of the Personal Income Tax Regulations, is limited to the quantitative limits established for said maintenance expenses, without, consequently, said reference considering expenses other than maintenance expenses, such as lodging expenses, or other aspects regulated in article 9 with respect to maintenance expenses other than its quantitative limits, given their different nature, taking into account that the per diems constitute allocations made by the employer to the employed worker who, by virtue of the power of organization available to the employer, must travel outside his or her workplace to carry out the same; while the deductible expenses for the maintenance of the businessman or professional referred to in article 30.2.5 of the Personal Income Tax Law are expenses incurred by the businessman or professional himself, in the development of his economic activity.

Note: The taxpayer must retain, for the maximum limitation period, providing when requested for this purpose, the supporting documents for the expenses to verify compliance with the requirements demanded by the law.