Skip to main content
Practical Income Manual 2021.

Transfer of job to a different municipality

The amounts received due to the transfer of a job to a different municipality are considered to be allowances for travel expenses exempt from tax, provided that, in addition:

  • Said transfer requires a change of residence.

  • The amounts received correspond exclusively to:

    1. Transportation and maintenance expenses of the employee or worker and their family members during the transfer.

    2. Expenses for moving furniture and belongings.


In the month of March 2021, Mr. PLL He was transferred by his company from Madrid to Barcelona, receiving compensation in the amount of 3,000 euros for said transfer. As proof of the transfer expenses, keep:

  • Invoice from the moving company for an amount of 1,293 euros.
  • Km travelled: 600 (he and his spouse traveled with their own car, without spending the night).


Amount received: 3,000.00

Amount exempt from tax.

  • Transportation expenses: (600 km x 0.19) = 114.00
  • Living expenses without overnight stays (26.67 x 2) = 53.34
  • Moving invoice: 1,293.00
  • Total: 1,460.34

Full taxable income (3,000.00 – 1,460.34) = 1,539.66 (*)

Note to example:

(*) A reduction of 30% will be applied to this amount, considering this performance obtained in a notoriously irregular manner over time. See in this same Chapter the special reduction applicable to certain full income from work.(Back)