Transfer of job to a different municipality

Amounts received due to the transfer of a job to a different municipality are considered to be tax-exempt travel expense allowances, provided that, in addition:

Such transfer requires a change of residence.
The amounts received correspond exclusively to:
1. Travel and subsistence expenses of the employee or worker and their family members during the transfer.
2. Expenses for moving furniture and belongings.

Example:

In the month of March 2023, Mr. PLL He was transferred by his company from Madrid to Barcelona, receiving compensation of 3,000 euros for said transfer. As proof of the moving expenses, keep:

Invoice from the moving company for an amount of 1,293 euros.
Km traveled: 600 (he and his spouse traveled in their own car, without staying overnight).

Solution:

Amount received: 3,000.00

Amount exempt from tax.

Travel expenses: (600 Km x 0.19) = 114.00
Living expenses without overnight stay (26.67 x 2) = 53.34
Moving invoice: 1,293.00
Total: 1,460.34

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

Note to example:

^(*)A reduction of 30% will be applied to this amount, as this income is considered to be obtained in a notoriously irregular manner over time. See in this same Chapter the special reduction applicable to certain gross earnings from work.^(Back)