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V0068-20 ·15 January 2020 ·consulta-vinculante Medium impact
Tax

Relocation allowances may qualify for a 30% tax reduction if deemed irregular

A query was raised regarding the taxation of relocation allowances and whether the 30% reduction applies. The DGT specifies that only expenses for travel, subsistence, and furniture are exempt; any excess is taxed as employment income, subject to a reduction if classified as irregular.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment of relocation payments, distinguishing between exempt reimbursement of expenses and taxable income subject to specific reductions.

Lifecycle

2020-01-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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