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V0195-22 7 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · movilidad geográfica

Geographic mobility expense deduction applicable only if fiscal residence remains in Spain

The consultant asks whether the geographic mobility expense deduction can be applied when relocating to the U.S. for a work contract. The DGT responds that to claim this benefit, it is essential to be a taxpayer of the IRPF for the relevant periods.

The question raised

Whether the increase in deductible expenses for geographic mobility can be applied to their IRPF tax return.

The DGT's ruling

To apply the increase in deductible expenses for geographic mobility, the taxpayer must be a tax resident in Spain and be registered with the employment office. The change of residence must be to a new municipality different from the habitual one due to the new job position. The benefit applies in the year of the change and in the following year, provided that the status of IRPF taxpayer is maintained. If the taxpayer ceases to be a tax resident in Spain in the second year, they will not be able to apply it in said period.

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