What every Spanish employer and employee should know about the current km rate
- The new mileage allowances in Spain remain set at €0.26 per kilometre for 2026, unchanged since Order HFP/792/2023 came into force on 17 July 2023.
- Amounts up to the €0.26/km cap are fully exempt from personal income tax (IRPF) and social security contributions, provided the journey is properly justified.
- Toll charges and car park fees are exempt on top of the mileage rate, provided receipts are retained.
- Any payment above €0.26/km is treated as ordinary employment income subject to IRPF withholding and social security contributions on the excess.
- The exemption covers work-related journeys away from the usual place of work; the daily commute between home and office is expressly excluded.
How the new mileage allowances work under Order HFP/792/2023
Until July 2023, Spain’s tax-free mileage rate had been frozen at €0.19 per kilometre for more than two decades.
Order HFP/792/2023 of 12 July raised that figure by 37% to €0.26 per kilometre, reflecting long-overdue recognition of rising fuel, insurance and maintenance costs, and the new mileage allowances have applied to all work-related private-vehicle travel since 17 July 2023.
The rate remains in force in 2026 without further amendment, and understanding how to apply it correctly is essential for any employer running a Spanish payroll and any employee whose role involves regular travel.
This guide sets out the current rates, the justification requirements the AEAT expects, the treatment of any payment above the cap, and how the rules apply to autónomos and international employers operating in Spain.
The current exempt amounts
The new mileage allowances sit within a broader framework of tax-exempt travel expenses (asignaciones por gastos de locomoción) regulated by Article 9 of the IRPF Regulation (Royal Decree 439/2007), updated by Order HFP/792/2023.
The framework distinguishes between mileage, per diem (subsistence) and public transport, each with its own cap.
| Expense type | 2026 exempt amount | Conditions |
|---|---|---|
| Mileage in private vehicle | €0.26 per km | Work journey, justified, outside daily commute |
| Tolls and car parking | Full amount | Receipt must be retained |
| Public transport (train, plane, bus, taxi) | Full amount | Ticket or invoice must be retained |
| Per diem national (day trip) | €26.67 per day | Meals during work travel, no overnight |
| Per diem national (with overnight) | €53.34 per day + accommodation | Overnight stay required, hotel receipt retained |
| Per diem foreign (day trip) | €48.08 per day | Travel outside Spain, no overnight |
| Per diem foreign (with overnight) | €91.35 per day + accommodation | Overnight stay required, hotel receipt retained |
The €0.26 per kilometre rate is 37% higher than the €0.19 that had stood in place since 2001, giving Spanish employers material additional headroom for reimbursing genuine work travel without triggering payroll withholdings.
What the AEAT expects to see to accept the exemption
Paying at €0.26 per kilometre is not enough on its own to secure the tax exemption.
The AEAT expects genuine, contemporaneous documentation that can survive inspection, and the standard of proof has tightened materially since the July 2023 uplift.
Minimum documentation per journey
- Date of the journey.
- Origin and destination.
- Kilometres travelled.
- Business reason for the trip (client visit, site inspection, off-site meeting).
- Name of the vehicle owner and confirmation the vehicle is not a company car.
Wider supporting documentation
- Employer’s expense policy specifying the reimbursement rules.
- Signed monthly expense report per employee.
- Tolls and parking receipts where claimed alongside mileage.
- Correspondence, meeting confirmations or client emails evidencing the business purpose.
Common triggers for AEAT scrutiny
- Round-number claims that repeat month after month (100 km every trip).
- High-mileage claims from an employee whose job description does not involve regular travel.
- Repeated claims for journeys that resemble the daily commute.
- Claims by directors or shareholders without independent verification.
DGT Consultation V0540-24 confirmed in April 2024 that GPS-based journey logs and expense-management apps are accepted evidence, provided each journey can be linked to a specific business reason.
How to apply the new mileage allowances step by step
| Step | Action | Detail |
|---|---|---|
| 1 | Confirm | The journey is work-related and outside the daily commute |
| 2 | Record | Date, origin, destination, kilometres and business reason |
| 3 | Retain | Toll and parking receipts if separately claimed |
| 4 | Submit | Signed monthly expense report to employer |
| 5 | Reconcile | Payroll shows exempt amount separately from taxable pay |
What happens if the employer pays more than €0.26 per kilometre
Some employers pay above the exempt cap by internal policy or under a collective agreement (for example €0.32 per km).
The excess over €0.26 per km is treated as ordinary employment income for the employee.
It is subject to IRPF withholding at the employee’s marginal rate.
It enters the base for social security contributions on both the employer and employee side.
It must be reported through payroll in the same month it is paid, not aggregated at year-end.
For a sales representative reimbursed at €0.32 per km for 12,000 km of work travel per year, the excess €0.06 per km produces €720 of additional taxable income and around €225 of employer social security cost.
How the new mileage allowances affect autónomos
The Order HFP/792/2023 exemption cap applies to employees, not to self-employed workers.
Autónomos in the ordinary IRPF estimation regime (estimación directa) can deduct genuine vehicle expenses against business income, but the rules for what counts as an affected asset are stricter than for employees.
Fuel, tolls, parking, insurance and maintenance are deductible only if the vehicle is fully affected to the business (100% business use), which is difficult to establish for most autónomos.
Where the vehicle is used mixed for business and private purposes, the AEAT has historically rejected pro rata deductions, treating the vehicle as unaffected and denying the whole deduction.
Certain professions (commercial agents, driving instructors, transport professionals, and specific service categories) are permitted to apply the 100% affectation presumption without further evidence.
For autónomos who work through their own SL, the €0.26/km cap applies to reimbursements they receive from the company for use of their private car on business trips, provided the same documentation standards are met.
A sales professional covering 8,000 km of client visits per year at the €0.26 exempt rate receives €2,080 tax-free reimbursement plus tolls and parking, materially reducing the after-tax cost of running a private vehicle for business purposes.
Employers building a Spanish payroll should also review our overview of labour law services in Valencia alongside the guide on hiring employees in Spain, both of which set out the wider payroll framework mileage reimbursements sit within.
Home to workplace: the daily commute exclusion
Journeys between the employee’s home and the usual workplace are not exempt under the new mileage allowances.
This is the single most common area of confusion, and the AEAT applies the exclusion strictly.
The exemption applies only to work-related journeys away from the habitual workplace: client visits, off-site meetings, temporary posting to another office, or site inspections.
Reimbursements for the daily commute are treated in full as ordinary employment income subject to IRPF and social security contributions.
Where a hybrid employee works from home some days and travels to the office on others, those office trips remain commute journeys and are not eligible for the exempt mileage rate.
The international angle: cross-border work travel
UK, French and other foreign employees working in Spain under a Spanish payroll are entitled to the same exempt rates as Spanish nationals, and any employer of record or Spanish subsidiary should apply Order HFP/792/2023 in exactly the same way.
Where an employee is temporarily posted to Spain and continues to be paid by a foreign employer under the EU Framework Agreement on Teleworking or an A1 certificate, the Spanish exemption cap does not directly apply, but the foreign employer’s reimbursement policy needs to be consistent with the employee’s tax residency position.
For per diem foreign travel from Spain, the €48.08 (day trip) and €91.35 (with overnight) caps apply plus documented accommodation, and airline, train and taxi receipts are exempt in full.
Foreign employers building a Spanish operation should also read our guides on relocating UK employees to Spain and UK-Spain double taxation, both of which explain the frameworks these travel reimbursements sit within.
Common mistakes to avoid
Assuming the daily commute qualifies for the exempt mileage rate: it does not.
Reimbursing at the exempt rate without collecting per-journey documentation, then losing the exemption on inspection.
Paying at €0.26 per km for autónomos who receive fees rather than an employment relationship: the rate applies to employees.
Failing to separately report the excess on payroll when the employer pays above €0.26 per km.
Overlooking the toll and parking exemption, which applies on top of the mileage rate provided receipts are kept.
The current per-diem and mileage caps are published on the AEAT electronic office, and specific queries can be directed through the DGT vinculating consultation procedure.
Talk to our team about your Spanish payroll and expense compliance
Our Valencia office advises employers, autónomos and international companies on payroll setup, expense-policy design, AEAT compliance and Labour Inspectorate defence.
We work in English, French, Spanish and Russian, and have supported Spanish payroll compliance for foreign employers since 1960.
Email: felix.delaguia@delaguialuzon.com
Phone: +34 963 74 16 57
Avinguda Regne de Valencia 6, 1º-2º, 46005 Valencia.
Frequently asked questions about the new mileage allowances
What are the new mileage allowances in Spain?
Since 17 July 2023, employees using their private vehicle for work-related travel can be reimbursed at €0.26 per kilometre free of IRPF and social security contributions, up from €0.19. The rate remains in force in 2026 under Order HFP/792/2023.
Are tolls and parking exempt on top of the mileage rate?
Yes. Tolls and car park fees are exempt in full when reimbursed alongside mileage, provided receipts are retained.
Does the exemption cover the daily commute?
No. Journeys between home and the usual workplace are expressly excluded and any reimbursement for the commute is treated as ordinary employment income subject to IRPF and social security.
What happens if the employer pays more than €0.26 per km?
Only the amount up to €0.26 per km is exempt. The excess is treated as ordinary employment income, subject to IRPF withholding at the employee’s marginal rate and to full social security contributions.
What documentation does the AEAT expect?
Date, origin, destination, kilometres and business reason for each journey, plus toll and parking receipts. GPS logs and expense-management apps are accepted evidence, provided each journey can be linked to a specific business purpose.
Do the new mileage allowances apply to autónomos?
The €0.26 exempt cap applies to employees. Autónomos in estimación directa may deduct genuine vehicle costs but only where the vehicle is fully affected to the business, which is difficult to establish outside specific professional categories.
Can foreign workers on Spanish payroll claim the exempt rate?
Yes. Any employee on a Spanish payroll can claim the exempt rate on work-related private-vehicle travel, regardless of nationality.
What are the per-diem caps for national and foreign travel?
National: €26.67 (day trip) or €53.34 (with overnight) plus documented accommodation. Foreign: €48.08 (day trip) or €91.35 (with overnight) plus documented accommodation.
Does the exemption change if the vehicle is electric?
No. The €0.26 per km rate applies regardless of fuel type. The AEAT has not introduced a differentiated rate for electric or hybrid vehicles.
When are the mileage rates expected to change again?
Order HFP/792/2023 remains in force in 2026 without further amendment. Any future revision would require a new BOE-published Order, and no proposal is currently active.
