Do You Deduct Income Tax (IRPF) from a Housekeeper?

Hiring a domestic worker raises plenty of tax questions, both for the employing family and for the worker. One of the most common is: do you have to deduct income tax from the payslip? Below we explain the answer, with its legal basis, a worked example and practical recommendations, updated for 2026.

What does the law say about income tax in domestic employment?

Royal Decree 1620/2011, which governs the special employment relationship of domestic household service, does not require the employer to withhold income tax. That duty falls on companies and other entities and on those paying in the course of a business activity (article 99.2 of the Spanish Income Tax Act, Law 35/2006, and article 76.1 of the income tax regulations, Royal Decree 439/2007); a family resident in Spain hiring for its own home is not among them. The conclusion: a private individual resident in Spain who hires a domestic worker does not deduct income tax from the payslip.

This applies to every type of employment relationship between private individuals and domestic workers: live-in or live-out, part-time or full-time.

There is one exception: a non-resident employer is on that list when paying employment income in Spain (article 76.1.d of the income tax regulations). If that is your case, check with a tax adviser before the first payslip.

So does the worker have to declare income tax?

Yes, in some cases. Even with no monthly deduction, the income received counts as earned income for tax purposes, so a domestic worker may be required to file a tax return when their earnings exceed the legal thresholds (article 96 of the Spanish Income Tax Act, Law 35/2006).

When is the worker required to file a return?

The threshold depends on who pays. If the payer is a resident family, which is not obliged to withhold, it drops to 15,876 € even with a single employer (article 96.3.c of the Income Tax Act):

• If any of their payers is a resident family: they must file a return if they earn more than 15,876 €/year gross.
• If all their payers are obliged to withhold and there are two or more: 15,876 €/year gross, provided the total earned from the second payer onwards exceeds 1,500 €/year.
• If all are obliged to withhold and there is only one, or the total from the second payer onwards does not exceed 1,500 €/year: 22,000 €/year gross.

For reference, the minimum wage for domestic workers in 2026 works out at 17,094 €/year gross for full-time work (Royal Decree 126/2026). So a full-time worker on the Spanish minimum wage (SMI) paid by a resident family is above 15,876 € and must file, even with a single employer. You can see the breakdown in our guide to how much a domestic worker earns in Spain in 2026.

Worked example

A domestic worker is employed by two households over the course of the year:

• Household 1: 1,000 €/month, so 12,000 €/year
• Household 2: 400 €/month, so 4,800 €/year
• Total: 16,800 €/year

Both payers are families, which are not obliged to withhold, and the total (16,800 €) is above 15,876 €, so the worker is required to file a tax return.

What happens if the worker does not file a return?

If they are required to file and fail to do so:

• They may receive a formal demand from the Spanish Tax Agency (Agencia Tributaria).
• They could face financial penalties and late-payment interest.
• They will not be able to claim refunds or deductions (for maternity, rent, large-family status, and so on).

Does the employer have any paperwork to file with the tax authorities?

Not if they are resident in Spain. A private employer resident in Spain:

• Does not make income tax deductions.
• Does not make payments on account of the tax.
• Does not have to file Form 111 (modelo 111) or issue withholding certificates.

Their obligations centre on registration and Social Security (Seguridad Social) contributions, which are compulsory from the very first hour worked. You can check the cost in our guide to how much Social Security costs for a domestic worker.

Can the employer deduct anything on their own tax return?

At national level, the employer cannot deduct either the salary or the contributions paid for their domestic worker. That said, some autonomous communities (such as the Community of Madrid, Comunidad de Madrid) do offer regional tax deductions for hiring household staff where certain conditions are met, so it is worth checking the rules of your particular region.

What must appear on a domestic worker's payslip?

Even though there is no income tax, the payslip must show the gross salary, the deduction for the worker's Social Security contribution, the net salary, and the date and signature. Issuing the receipt every month is compulsory (Royal Decree 1620/2011, article 8.6) and, as an agency, we recommend having it signed by both parties: it protects employer and worker alike in the event of any dispute. You will find the step-by-step process in our guide on how to draw up a payslip for a domestic worker, and we answer the common question of whether payslips are compulsory for domestic workers.

How to explain it to the worker

Workers often ask why no income tax is being deducted, or whether this means they are working off the books. The best approach is to explain it clearly:

You are legally employed and registered with Social Security. Your employer is not required by law to deduct income tax, but that does not change the fact that you, as the worker, may have to declare your income if it exceeds the annual thresholds.

This information has been checked against the legislation in force (the Spanish Income Tax Act, Law 35/2006; Royal Decree 439/2007; and Royal Decree 1620/2011) for the 2026 tax year. If you would rather delegate the registrations, payslips and contributions, at Maids & Co we manage the entire employment cycle for your domestic worker: take a look at our prices and our domestic worker service page.