Everything related to taxation and fiscal matters is usually quite complicated for citizens, who are often quite ignorant about the current regulations and the possible deductions that can be made in their tax return. For this reason, it is important to know and understand what is tax deductible in the income tax return, what are the concepts that we must address in our return and, in our case, we will also show you which insurance is deducted from income and how they do it.
When we talk about Insurance, we enter a fairly complex and delicate terrain, since there are different types with different peculiarities, so it is convenient to know their details in depth when hiring them. Therefore, before making a direct decision with an insurer, it is advisable to hire the services of a specialized insurance consultancy, which allows us to find the best Life insurances, Home or Civil liability insurance for our particular situation.
At Euroteide Insurance we offer you the best insurance consultancy service in the south of Tenerife, with more than XNUMX years of experience in the sector and guaranteeing a personalised and quality service to all our clients. Service, our excellence.
What is tax-deductible
There are many concepts to deduct in the income tax return, so we will show you the most important groups that exist today.
Autonomous deductions
There are certain deductions that apply to the entire Spanish population, but there are others that vary depending on the autonomous community to which you belong. In the case of Tenerife, the islands are in charge of regulating the deductions themselves, so it is convenient to consult the current regulation to know the differences that exist with respect to national regulations.
Household and housing expenses
One of the best known deductions is an allowance that affects those who have bought their home before January 1, 2013, being able to deduct up to 15% of the investment. There are also deductions on rent and, in some communities, on household expenses, although this is not the case in the Canary Islands.
Financial products
There are also certain tax-deductible financial products. Among them, we can highlight the pension plans, which have very interesting tax advantages for the contractor, and the investments in newly created companies, which are encouraged by the State (and also by some autonomies). In addition, there are also tax credits on investments in companies listed on the MAB.
By children and relatives
The percentages and rates will vary depending on the autonomous community, but there are different deductions related to the family and children: for maternity (in the case of the Canary Islands, amounts are deducted for each child born or adopted), expenses for daycare centers and school supplies (15% in nurseries in the Canary Islands), by large family ...
Culture, ecology and philanthropism
Being supportive also has tax incentives: Law of Incentives to Patronage, political affiliation, donations to parties, monetary contributions to the conservation and preservation of the planet (included in the Canary Islands), acquisition of Historical Heritage, rehabilitation of buildings in areas declared world heritage ..., all of them are activities that can be deducted.
Insurance that is tax deductible on income
There are different types of Tax-deductible insurance in income, but we will divide them into two large groups: for the self-employed and related to mortgages:
Self-employed
- Related to the activity (loss of profits, theft, civil liability, among others). You can deduct the premiums of all the Insurances related to the professional activity that the self-employed person develops.
- For vehicles. Expenses for certain types of vehicles are deductible for the self-employed: vehicles intended for the provision of transport services, for transfer of use, for the travel of representatives or commercial agents, mixed vehicles for the transport of goods and for the provision of pilot or driver training services.
- Physicians. With a limit of 500 euros per family member (or 1500 for people with disabilities), medical insurance premiums are deductible from personal income tax for the self-employed, like all Health insurances taken out for employees.
- Accidents. Whether to cover your own assistants or those of your employees, accident insurance premiums are also tax deductible.
Related to mortgages
- Of life. Although it is not compulsory insurance for mortgages, it is one of the types of insurance that is deducted from income.
- Home. Homes purchased before January 1, 2013 are entitled to a deduction of 15% of the investment (with a maximum of 9040 euros), as long as they are linked to a Home Insurance that meets these conditions.
- Fire protection. All homes subject to a mortgage must have Fire Insurance, and the premium that this Insurance satisfies is included in the deduction for the investment in the property.
- Payment protection. Although it is a less common type of insurance, it also has tax deductions.
What insurance should you take out
In our country there are different insurances that are mandatory, either for companies, self-employed or owners, and it is necessary to have them to comply with the obligations with the law and guarantee the safety of the activity or property in question.
In relation to income tax relief, you must take into account everything that we have mentioned above when taking out an insurance. In addition to the compulsory insurance, there are others, such as the protection of payments in mortgages, which offer very interesting benefits, and their premiums can be deducted in the face of the income statement. To get more information and to know the best Insurance according to your personal situation, you can contact us, and we will offer you a high-quality and personalized advice.
We have seen that Life insurance is tax deductible, just like Home insurance, and can represent significant savings for our income tax return. For this reason, it is convenient to know the fiscal circumstances of all our insurances, in order to know which of them we can deduct in the IRPF. At Euroteide Insurance we will advise you to optimize your tax situation, informing you about possible deductions and recommending the best Insurance currently on the market.
