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V2546-20 27 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Only relocation allowances covering travel, subsistence, and furniture costs are tax-exempt

The taxpayer asks whether a relocation allowance of 4,200 euros is exempt from taxation. The DGT rules that only the portion corresponding exclusively to travel, subsistence, and the moving of household goods is exempt, provided that the relocation requires a change of residence.

The question raised

Whether the amount of 4,200 euros received is exempt from taxation pursuant to Article 9.B.2 of the Tax Regulations.

The DGT's ruling

Amounts paid for a transfer to a different municipality that requires a change of residence shall be exempt, provided they correspond exclusively to expenses for travel, subsistence, and the transfer of furniture and household goods. Any excess shall be taxed as employment income. To apply the 30% reduction for irregular income, the amount must be imputed to a single tax period, which does not occur if the allowances are received on a monthly basis.

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