For the application of the increase in the deductible expense for geographical mobility it is necessary that the new job requires a change of residence, being indifferent that within the period of application of the aforementioned increase, new changes of work occur.
Geographical mobility expenses
A taxpayer registered at the employment office corresponding to his locality of residence is appointed as an interim official of a given Autonomous Community. The acceptance of the job implies the change of your residence to another location in the 2017 tax period. In the 2018 tax period, the taxpayer resigned from that job, having been offered another job as an official of another Administration.
Given the doubt about the taxation of this situation, it raises a consultation with the General Directorate of Taxes raising the possibility of applying the expense for geographical mobility, as well as the tax periods during which said expense may be applicable.
In general, the increase in the deductible expense for geographical mobility is conditional on the fact that the taxpayer’s residence has actually changed to a new municipality, different from that of his habitual residence, and that the new job requires such a change. In this sense, it should be noted that the simple registration is not considered by itself a sufficient element of accreditation of residence and habitual residence in a certain locality, nor is the fact of moving or maintaining the fiscal domicile in a certain place. The realization of such a change of residence and its necessity is a matter of fact.
The taxpayer must be able to prove compliance with all the requirements demanded by any means of proof admitted in law, corresponding to assess the evidence provided to the management and inspection bodies of the Tax Administration.
Once the required requirements are met, the increase in the deductible expense for geographical mobility will be applied in the tax period in which the change of residence occurs and in the following one (in 2017 and 2018 in the case raised), regardless of whether they occur within the period of application new job changes.
Increase in deductible expense for geographic mobility
For unemployed taxpayers registered with the employment office who accept a job requiring the transfer of your habitual residence to a new municipality, the deductible expense for the concept of “other expenses different from the previous ones” is increased in the tax period in which the change of residence occurs and in the next, by an additional 2,000 euros per year.
But to do this, the following requirementsmust be met:
- The taxpayer must be unemployed and registered with the employment office.
- The job that is accepted must be located in a municipality other than that of the taxpayer’s habitual residence, which requires the transfer of his residence.
- The taxpayer must move his residence to a new municipality.
(Source: LIRPF art.19.2.f; RIRPF art.11)
On the other hand, an unemployed taxpayer accepts a job for which he moves his residence to another municipality. The net return on work prior to the application of the general reduction for obtaining earned income is 30,000 euros in 2018.
Therefore, for the financial year 2018 you must indicate the following deductions:
- Deductible general expense: 2,000 euros.
- Increase for geographical mobility: 2,000 euros.
If you have any questions or need any clarification about work performance deductions for geographic mobility, you can contact any of our advisors to help you resolve them.