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V3454-20 27 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · gasto deducible

Geographical mobility expense increase cannot be applied without registration with the employment office

A taxpayer inquired whether they could apply the increased deductible expense for geographical mobility after changing their residence, having been registered as a jobseeker only during the first quarter of 2019. The DGT ruled that this is not possible as not all legal requirements have been met.

The question raised

Whether a taxpayer who was unemployed and registered as a job seeker in the first quarter of 2019, but who since the second quarter of 2019 and to the present has been employed by the same company in various locations different from their habitual residence, can apply the increase in deductible expenses for geographic mobility in their Personal Income Tax return. Due to this, they have commuted daily without a change of residence occurring, until September 2020, which is when said change of residence to the municipality where they maintain their current employment relationship did occur.

The DGT's ruling

To apply the increase in deductible expenses for geographic mobility, the taxpayer must be registered with the employment office and accept a position that requires a change of habitual residence to a new municipality. The change of residence must actually occur, and its necessity is a matter of fact that must be substantiated. In this case, the requirement to be registered as a job seeker immediately prior to accepting the position that motivates the change is not met.

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