{"id":11592,"date":"2026-10-27T14:50:29","date_gmt":"2026-10-27T12:50:29","guid":{"rendered":"https:\/\/ollerbrokers.com\/?p=11592"},"modified":"2026-10-27T14:50:31","modified_gmt":"2026-10-27T12:50:31","slug":"employee-health-insurance-500-euro-exemption","status":"publish","type":"post","link":"https:\/\/ollerbrokers.com\/en\/employee-health-insurance-500-euro-exemption\/","title":{"rendered":"Employee health insurance: how the \u20ac500 tax exemption works"},"content":{"rendered":"<style>#page-container .obb{font-size:17px;line-height:1.75;color:#33333a}#page-container .obb h2{font-family:Archivo,sans-serif!important;font-size:25px!important;line-height:1.3!important;font-weight:700!important;color:#16161a!important;letter-spacing:-.01em;margin:44px 0 14px!important;padding:0 0 0 16px!important;border-left:4px solid #9b1f2e}#page-container .obb h3{font-family:Archivo,sans-serif!important;font-size:18px!important;line-height:1.4!important;font-weight:700!important;color:#16161a!important;margin:0 0 6px!important;padding:18px 0 0!important;border-top:1px solid #e6e2de}#page-container .obb p{font-weight:400!important;font-size:17px!important;line-height:1.75!important;margin:0 0 16px;padding:0}#page-container .obb li{font-weight:400!important;font-size:17px!important;line-height:1.65!important;margin:0 0 6px}#page-container .obb p:empty{display:none}#page-container .obb .obb-sum{background:#f6f4f2;border-left:4px solid #9b1f2e;padding:20px 24px 12px;margin:26px 0 8px}#page-container .obb .obb-lbl{font-size:13px;font-weight:700;letter-spacing:.12em;text-transform:uppercase;color:#9b1f2e;margin-bottom:8px}#page-container .obb .obb-sum li{font-size:16px!important}#page-container .obb .obb-cta{background:#16161a;padding:30px 32px;margin:40px 0 10px}#page-container .obb .obb-ct{font-size:22px;line-height:1.3;font-weight:700;color:#fff;margin-bottom:8px}#page-container .obb .obb-cta p{color:#d8d6d3!important;margin:0 0 18px}#page-container .obb .obb-cta a.obb-btn{display:inline-block;background:#9b1f2e;color:#fff!important;padding:11px 26px;font-weight:600;font-size:16px;text-decoration:none}#page-container .obb h2.obb-src{font-size:18px!important;border-left:0;padding:0!important;color:#6b6b72!important;margin-top:48px!important}#page-container .obb h2.obb-src+ul li,#page-container .obb h2.obb-src+ul a{font-size:14px!important;color:#6b6b72}<\/style>\n<div class=\"obb\">\n<p>Health insurance is one of the most common employee benefits. In Spain it also has a tax advantage that many companies do not take full advantage of.<\/p>\n<div class=\"obb-sum\">\n<div class=\"obb-lbl\">Key points<\/div>\n<ul>\n<li>Up to \u20ac500 a year per person is not taxed as a benefit in kind (\u20ac1,500 for people with disabilities).<\/li>\n<li>The limit applies to the employee, their spouse and their children, each separately.<\/li>\n<li>Only the part of the premium above the limit is taxed.<\/li>\n<\/ul>\n<\/div>\n<h2>What the law says<\/h2>\n<p><a href=\"https:\/\/www.boe.es\/buscar\/act.php?id=BOE-A-2006-20764#a42\" target=\"_blank\" rel=\"noopener\">Article 42 of the Spanish Personal Income Tax Act<\/a> provides that health insurance premiums paid by the employer are not a benefit in kind up to \u20ac500 per person per year. The limit rises to \u20ac1,500 for people with disabilities.<\/p>\n<h2>Who it applies to<\/h2>\n<p>The limit applies to the employee and also to their spouse and children, each with their own limit. A family of four can be exempt up to \u20ac2,000 a year.<\/p>\n<h2>What if the premium exceeds the limit<\/h2>\n<p>Only the excess is taxed. If an employee\u2019s premium is \u20ac650, the \u20ac150 above the limit is a benefit in kind.<\/p>\n<h2>Medical network or reimbursement<\/h2>\n<p>With a medical network you use the doctors contracted by the insurer. With reimbursement you can also see other doctors and recover part of the cost. Reimbursement is more expensive, so it is worth checking whether your team will use it.<\/p>\n<h2>What to check before you buy<\/h2>\n<ul>\n<li>Whether the insurance will cover the whole workforce or specific groups.<\/li>\n<li>Whether families are included and who pays their share.<\/li>\n<li>Co-payments and waiting periods: what the employee pays each time and when cover starts.<\/li>\n<\/ul>\n<h2>How it can be offered<\/h2>\n<p>The company can pay for the insurance as an employee benefit or include it in a flexible remuneration plan, where the employee allocates part of their salary to the premium. The same tax-free limit applies in both cases.<\/p>\n<h2>What the company gains<\/h2>\n<ul>\n<li>It is a highly valued benefit that helps attract and retain talent.<\/li>\n<li>A group policy usually offers better terms than the sum of individual policies.<\/li>\n<li>The company decides which groups of employees are covered and whether families are included.<\/li>\n<\/ul>\n<p>More information on our <a href=\"https:\/\/ollerbrokers.com\/en\/business-insurance\/personal\/health-insurance\/\">health insurance<\/a> page.<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>Can the employee\u2019s children be included?<\/h3>\n<p>Yes. The \u20ac500 limit also applies to children, each with their own limit.<\/p>\n<h3>What happens to the part above \u20ac500?<\/h3>\n<p>The excess is treated as a benefit in kind and is taxed in the employee\u2019s personal income tax.<\/p>\n<h3>Does it have to be offered to the whole workforce?<\/h3>\n<p>No. The company can decide which groups of employees it offers it to.<\/p>\n<div class=\"obb-cta\">\n<div class=\"obb-ct\">Want to offer health insurance to your team?<\/div>\n<p>We compare options from several insurers and help you design the group policy.<\/p>\n<p><a class=\"obb-btn\" href=\"https:\/\/ollerbrokers.com\/en\/contact-us\/\">Let\u2019s talk<\/a><\/div>\n<h2 class=\"obb-src\">Sources<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.boe.es\/buscar\/act.php?id=BOE-A-2006-20764#a42\" target=\"_blank\" rel=\"noopener\">Spanish Personal Income Tax Act 35\/2006, Article 42<\/a><\/li>\n<\/ul>\n<\/div>\n<span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>If a company pays for its team\u2019s health insurance in Spain, it is not taxed as a benefit in kind up to \u20ac500 per person per year. Here is how it works.<\/p>\n","protected":false},"author":6,"featured_media":11704,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[158],"tags":[],"class_list":["post-11592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-insurance"],"_links":{"self":[{"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/posts\/11592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/comments?post=11592"}],"version-history":[{"count":5,"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/posts\/11592\/revisions"}],"predecessor-version":[{"id":12231,"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/posts\/11592\/revisions\/12231"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/media\/11704"}],"wp:attachment":[{"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/media?parent=11592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/categories?post=11592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ollerbrokers.com\/en\/wp-json\/wp\/v2\/tags?post=11592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}