Exemption for per diems and subsistence for workers under the special regime of Art. 93 LIRPF

The Dirección General de Tributos (DGT) has issued a relevant ruling for displaced workers who pay taxes in Spain under the special regime provided for in Article 93 of the Personal Income Tax Law (LIRPF). The inquiry focused on determining whether the exemption for per diems, subsistence, and travel expenses is applicable to this specific group.

What the DGT has resolved

The Administration has clarified that taxpayers opting for the special regime of Article 93 of the LIRPF are taxed on their income in Spain following the rules of the TRLIRNR. However, when determining the gross amount of employment income, the rules of the LIRPF must be applied.

In this sense, the DGT establishes that per diems and allowances for travel expenses are exempt from taxation provided they strictly comply with the requirements and limits established in Article 9 of the Personal Income Tax Regulations (RIRPF) (RD 439/2007). This includes allowances intended for:

• Locomotion expenses.
• Subsistence.
• Accommodation in hospitality establishments.

For such exemption to be effective, the amounts received must adjust to the current regulatory conditions.

What it means for you

If you are a displaced worker who is a tax resident in Spain and is under the special regime, this ruling confirms that you do not have to pay tax on per diems and travel expenses, provided these do not exceed the legal limits. This represents a direct tax advantage, as these amounts are not included in the taxable base of your employment income.

For companies employing professionals under this regime, the relevance is indirect but necessary, as they must ensure that the application of per diem exemption limits in the payroll strictly adheres to the RIRPF to avoid contingencies.

What should be done

It is fundamental to verify that all allowances for travel, subsistence, and accommodation are supported by documentation proving their nature and that the amounts do not exceed the limits set by Royal Decree 439/2007. Given that the application of this special regime has technical particularities, it is recommended to assess each specific situation to ensure compliance with the applicable regulations.