On 22 September 2026, the DGT reaffirmed its long-standing criterion that training expenses (such as a master’s degree) incurred before the taxpayer registers in the Special Regime for Self-Employed Workers (RETA) are not deductible for Personal Income Tax (IRPF) or VAT purposes. The rationale is that the expense must be directly related to the economic activity; training undertaken before the activity commences is considered preparatory and not inherent to the business. This applies even if the training is directly relevant to the subsequent professional activity.
Key Takeaways
- Timing Is Decisive: The expense must be incurred after the start date of the economic activity (registration in RETA) to be deductible.
- No Retroactive Deductibility: Even if the master’s degree is essential for the profession, costs incurred pre-registration are classified as personal, not business, expenses.
- VAT Implications: Input VAT on such training is also non-deductible, as the taxable person was not yet acting as such.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement