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V0206-16 ·21 January 2016 ·consulta-vinculante Medium impact
Tax

Travel allowances are exempt if they meet amount, purpose and time limits

The tax treatment of payments made for relocation to another locality as compensation for temporary residence is consulted. The DGT confirms these payments are exempt from IRPF if they cover living and accommodation expenses, do not exceed daily limits, and the employee does not stay continuously in the same municipality for more than nine months.

In 6 key points

How it affects those involved

Employees receiving relocation allowances for temporary stays are exempt from income tax if the payments cover living and accommodation costs, are within daily limits, and the stay does not exceed nine months continuously.

Lifecycle

2016-01-21PublishedPublished 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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