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Practical manual for Income Tax 2023.

Locomotion expenses exempt from tax

amounts that, under the conditions and amounts indicated below, the employee or worker receives for the purpose of compensating for travel expenses incurred by travelling outside the factory, workshop, office or workplace to carry out work in a different location, regardless of whether the latter is located in the same or a different municipality as the usual workplace, are exempt from taxation and, therefore, shall not be included among the gross income from work.

On the other hand, amounts received for the employee or worker's travel from their home to their workplace are fully subject to tax and must be included in the declaration as full employment income, even when both are located in different municipalities.

Notwithstanding the foregoing, amounts paid to entities responsible for providing public passenger transport services for the travel of employees between their place of residence and the workplace are exempt, up to a limit of 1,500 euros per year for each worker, including indirect payment methods that meet the conditions established in article 46 bis of the Personal Income Tax Regulation . See this exemption in section " Exempt income from work in kind " of this chapter.

Amounts allocated by the company for this purpose under the following conditions and amounts are exempt from taxation and, therefore, will not have to be included among income from personal work:

  • If the employee or worker uses public transport, the amount of the expense that is justified by invoice or equivalent document.

  • Otherwise, provided that the reality of the displacement is justified, the amount resulting from computing:

    1. Until July 16, 2023: 0.19 euros per kilometer traveled, plus justified toll and parking charges.

    2. From July 17, 2023 : 0.26 euros per kilometre travelled , plus justified toll and parking charges.

    Accuracy : the sole article.1 of Order HFP /792/2023, of July 12, 2023 ( BOE of July 17), with effect from July 17, 2023, has raised from 0.19 euros to 0.26 euros per kilometer traveled the amount exempt from tax destined by the company to compensate the travel expenses of the employee or worker who travels outside the factory, workshop, office, or workplace, to carry out his work in a different place, provided that the reality of the trip is justified.

Note: Any excess received over the indicated amounts is fully subject to taxation as employment income.