Deductible expenses of article 19 of the Personal Income Tax Law

Once the total work performance has been determined, the expenses that the Income Tax Law classifies as must be deducted to determine the net performance. For these purposes, the following are considered exclusively tax-deductible expenses:

1. Contributions to Social Security or to compulsory general mutual funds for public servants.

   Attention: contributions to systems that, according to the regulations of the country of origin, are similar to Social Security or Mutual Societies in other States and are made in connection with the development of work as an employee in said country will also be considered a deductible expense for the purposes of determining net work income, provided that the contributions are directly linked to the gross work income declared in the Personal Income Tax .

2. Deductions for passive rights.

3. Contributions to orphanages or similar institutions.

4. Dues paid to unions and dues paid to professional associations.

   The fees paid to professional associations will be deductible as an expense when membership is mandatory for the performance of work, in the part that corresponds to the essential purposes of these institutions, and with a limit of 500 euros per year (See art. 10 Regulation IRPF ).

5. Legal defense expenses arising directly from litigation arising from the relationship between the taxpayer and the person from whom he receives the income, with a limit of 300 euros per year.

   The concept of legal defense is defined around the intervention of legal professionals who defend the interests of the taxpayer (recipient of employment income) in disagreements or disagreements that he may have with the person from whom he receives the income. Therefore, only the fees of these professionals will be considered included in this expense concept and always within the limit of 300 euros per year.

6. Other expenses other than those above.