How does domestic service pay taxes?
For the domestic employee, the salary received is taxed in the IRPF as work income. The tax peculiarity lies in the fact that the individual employer is not considered a withholding agent, so they do not deduct IRPF from the monthly payroll.
In Spain, household employees' salaries are taxed as work income in the IRPF. The employer, being a private individual, is not required to withhold IRPF from the monthly payroll. As a result, the annual income threshold for filing a tax return is reduced to 15,000 euros. The employer cannot deduct the salary cost from state IRPF, but some autonomous communities allow deductions for hiring help for dependents.
The employer must register the employee with the Social Security from the first hour worked, and both parties contribute to the employee's monthly social security costs.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
