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V1591-22 30 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dietas

Daily allowances of €35.58 for travel with overnight stays in Spain may be exempt from Income Tax

A query was raised regarding whether a daily allowance of €35.58 for travel involving an overnight stay within Spanish territory is exempt from Income Tax (IRPF) withholding. The Directorate General for Taxes (DGT) ruled that, as it does not exceed the daily limit of €53.34, the amount is exempt from taxation provided that all regulatory requirements are met.

The question raised

Whether said amount (35.58 euros) received as a per diem is exempt from IRPF withholding tax.

The DGT's ruling

Allowances for subsistence and accommodation expenses are exempt from Personal Income Tax (IRPF) if received due to travel to a municipality other than the habitual place of work and residence. For domestic travel involving an overnight stay, the subsistence limit is 53.34 euros per day, and accommodation expenses are exempt if substantiated. In this case, the amount of 35.58 euros does not exceed the limit and, therefore, is fully exempt from taxation provided that all other legal requirements are met.

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