EXEMPT EMPLOYEE ALLOWANCES

These amounts are not subject to income tax or social security contributions.

 

Workers in general

Expenses incurred by the company for staff allowances, travel and accommodation are tax deductible in Corporate Income Tax.

Employees, for their part, should not count any income, since the amounts they receive are not remuneration, but compensation for expenses actually incurred. However, this exemption from personal income tax has limits, and if these limits are exceeded, employees must declare the excess remuneration:

 

Amounts exempt from taxation in the Personal Income Tax of employees

Concept Amount
Travel expenses on public transport Those that are justified
Employee’s vehicle travel expenses 0.26 euros per km
Toll and parking expenses Those that are justified
Accommodation expenses Those that are justified

 

Daily living expenses exempt (any excess is subject to income tax)

Concept In Spain Abroad
Per trip without overnight stay 26.67 48.08
Per trip with overnight stay 53.34 91.35

 

Truck drivers

Drivers of vehicles intended for the transport of goods by road who stay overnight in a municipality other than their usual place of work and their own home – in addition to the exempt allowances for travel and maintenance indicated – may also receive an allowance for accommodation expenses, without needing to justify them. Unlike other workers, who must always justify all accommodation expenses in order to be exempt.

This allowance for stay will be exempt from income tax for the recipient, up to the following limits:

  • 15 euros per day if the journey takes place in Spain.
  • 25 euros per day if it corresponds to travel abroad.

However, if the driver, instead of receiving these allowances, justifies to the company that he has incurred higher expenses and the company reimburses him, these will also be exempt from income tax in their entirety.

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