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V3187-17 13 December 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dietas de manutención

Overseas subsistence and accommodation allowances are tax-exempt if they meet Regulation limits and requirements

A company has requested clarification regarding the Personal Income Tax (IRPF) exemption for subsistence and accommodation allowances paid to employees deployed abroad. The Directorate General for Taxes (DGT) clarifies that these amounts are not taxable provided they comply with the quantitative limits and displacement requirements established in the IRPF Regulations.

The question raised

Justification of per diems (subsistence) for the case of employees traveling abroad for an approximate period of one month.

The DGT's ruling

Allowances for subsistence and lodging are not subject to Personal Income Tax (IRPF) if the employee travels to a municipality other than their residence and habitual place of work. For subsistence with overnight stay abroad, the limit is 91.35 euros per day, and without overnight stay, 48.08 euros per day. Lodging expenses are exempt to the extent they are justified by hospitality invoices, excluding residential rent. Any amount exceeding these limits shall be taxed as employment income.

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