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V3072-21 7 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Subsistence and accommodation allowances are tax-exempt if RIRPF requirements and limits are met

A company has requested clarification on whether payments made to employees for subsistence and accommodation expenses during business travel away from their usual workplace and residence are subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that these allowances are exempt from tax, provided they comply with the requirements and limits established in the Income Tax Regulations (RIRPF).

The question raised

Taxation of amounts paid to employees for subsistence and accommodation expenses.

The DGT's ruling

Allowances for subsistence and accommodation expenses are exempt from Personal Income Tax (IRPF) if the employee travels to a municipality other than their residence and habitual place of work. For subsistence, quantitative limits apply, which vary depending on whether an overnight stay occurs and whether the travel is within Spain or abroad. Accommodation expenses in the hospitality sector are exempt provided they are justified with supporting documentation. Any amount exceeding these limits or not corresponding to travel outside the habitual municipality shall be taxed as employment income.

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