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V1344-24 7 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · movilidad geográfica

Geographical mobility expense increases may be applied in the year of change and the following year

A civil servant has enquired whether they can apply the geographical mobility expense increase following their appointment and whether this applies only to certain earnings. The Directorate-General for Tax (DGT) has ruled that it can be applied if the individual was unemployed and registered with the employment office prior to the publication of the list of successful candidates, and that the increase applies only to the earnings that necessitated the relocation.

The question raised

Whether there is a right to apply the increase in deductible expenses for geographic mobility in the 2023 Personal Income Tax return, pursuant to the provisions of Article 19.2 f) of the LIRPF. If so, it is questioned whether it should only be applied to the income received from the IEF and not from the AEAT, and whether the transfer from Madrid to Barcelona has any impact on the ability to apply the aforementioned increase in expenses.

The DGT's ruling

The increase of 2,000 euros per year is applicable if the taxpayer was unemployed and registered with the employment office prior to the publication of the final list of successful candidates. The benefit may be applied in the year of the change of residence and in the following year, even if it was not applied in the first year. This increase shall be attributed exclusively to the employment income that motivated the relocation, up to the limit of the total amount of said income.

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