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V3311-20 6 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Subsistence and accommodation allowances are not exempt if used for renting accommodation

A worker inquired whether subsistence and accommodation allowances received for travel away from their usual workplace are exempt from Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that these are only exempt if accommodation expenses are incurred in hospitality establishments, thereby excluding residential rentals.

The question raised

Whether the subsistence and accommodation allowance received would be exempt from taxation in that case.

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 habitual center and residence, complying with quantitative limits and temporal requirements. Exempt accommodation expenses must be justified by amounts corresponding to hotels or hospitality establishments, and amounts intended for the rental or leasing of a dwelling may not be assimilated as such.

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