Skip to content
Back to index
V0206-16 21 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dietas

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.

The question raised

Question posed: The tax treatment that must be applied, for the purposes of Personal Income Tax, to the indicated amounts.

The DGT's ruling

Allowances for subsistence and accommodation expenses are not subject to Personal Income Tax (IRPF) if they meet three requirements: they must compensate for hospitality expenses, not exceed the daily limits established by the Regulations, and the stay in a municipality other than the habitual one must not exceed nine continuous months. The calculation of the nine months is performed from date to date, without interruption by the change of year. The nine-month limit applies to each municipality individually.

Free assessment and quote