Per diems in payroll are part of the daily routine for any HR department that manages employees who travel for work.
However, few subjects generate as many errors, misunderstandings, and incorrect settlements with Social Security and the Tax Agency.
The reason is simple: the regulations are precise, but their practical application requires clearly understanding what a per diem is, when it is exempt, and in which cases it must be taxed and contribute to Social Security.
What exactly are per diems in payroll?
They are amounts the company pays the employee to compensate for meal or accommodation expenses resulting from a business trip outside their usual workplace and outside their municipality of residence.
They are not a fixed “bonus” but compensation for an actual and occasional expense.
Are all per diems exempt from contributions and taxation?
No. They are only exempt when they meet all the requirements established by law.
Which regulations govern the exemption?
Mainly two:
• Article 23.2.a of RD 2064/1995.
• Article 9 of Royal Decree 439/2007.
What are the requirements for a per diem to be exempt?
• The employee must travel outside their usual workplace.
• The travel must be to a municipality different from both the workplace and the employee’s residence.
• The amounts paid cannot exceed the limits established by tax law.
• The expense must have a strictly professional purpose and must be verifiable.
If even one of these requirements is not met, the per diem is no longer exempt.
How should the company verify the trip?
By any reasonable means:
• Travel authorization.
• Ticket or transportation invoice.
• Accommodation booking.
• Internal instruction email.
• Work logs or schedules.
The authorities must be able to confirm the date, place, purpose, and duration.
What types of per diems exist and how do they differ?
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Full per diem: Includes breakfast, lunch, and dinner.
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Half per diem: Includes breakfast + lunch, or breakfast + dinner.
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Accommodation expenses: Usually not included within “per diems” unless the collective agreement states otherwise.
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Transportation expenses: Covers public transportation or the use of a private vehicle (mileage, tolls, parking).
Each concept has different tax limits and treatment.
What tax limits exist for meals and accommodation?
As set out in Article 9 of RD 439/2007:
• Travel within Spain:
– €26.67/day without overnight stay.
– €53.34/day with overnight stay.
• Travel abroad:
– €48.08/day without overnight stay.
– €91.35/day with overnight stay.
Any excess amount is subject to tax and Social Security contributions.
Does accommodation always have to be in a hotel?
Yes, if you want it to be exempt.
When a company rents an apartment for employees on assignment:
• It is not considered a per diem.
• It is considered payment in kind.
• It is subject to withholding and Social Security contributions based on the rental value.
• It cannot be treated as an exempt per diem.
What happens if the collective agreement regulates per diems?
Two scenarios may occur:
• The collective agreement sets per diem amounts, but there is no actual business trip.
→ They are not exempt.
• There is a business trip, but the agreement sets amounts that exceed IRPF limits.
→ The excess is taxable and subject to contributions.
A collective agreement does not guarantee exemption. Tax regulations always prevail.
Are per diems exempt if the employee stays more than 9 months in the same destination?
No. The regulation is clear:
If an employee stays for 9 continuous months in the same municipality, per diems for meals cease to be exempt from the first day of the assignment.
Key points:
• It must be a continuous stay in the same municipality.
• Vacations or sick leave do not break continuity.
• The fiscal year change does not interrupt the period.
Why do they cease to be exempt after 9 months?
Because if the stay exceeds that period, the law considers it is no longer a “temporary assignment” but a stable situation that no longer compensates an exceptional expense.
Can per diems be paid under a “work or service” contract?
No.
In these contracts:
• The “workplace” is the work site itself.
• The worker is hired specifically to work there.
• There is no compensable displacement.
Therefore, per diems are not exempt.
And in permanent construction contracts (fijos de obra)?
Also no, for the same reason.
The only exception:
If the worker occasionally travels to a different work site, and it is not a regular occurrence.
That travel may generate exempt per diems.
What about per diems for shareholders and directors?
Shareholders and directors do not have an employment relationship under the principles of control and dependency.
Therefore:
• They cannot apply the exempt per diem regime.
• Even if they incur travel expenses, these are taxable.
• The company may reimburse them, but they are treated as employment income without exemption.
How should companies correctly manage per diems?
Proper management requires three steps:
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Establish a travel policy with clear limits, documentation, approval processes, and criteria.
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Always record the reason for the trip—place, date, and duration.
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Monitor legal and time limits carefully—amounts and months.
A well-documented company avoids fiscal risks and penalties.
How does the Labour Inspectorate usually review these cases?
They typically request:
• Payrolls.
• Transportation receipts.
• Accommodation invoices.
• Internal travel documentation.
• Employment contracts.
• Evidence of how long the employee stayed in the destination.
If irregularities are found, they may claim:
• Unpaid Social Security contributions.
• IRPF withholdings not applied.
• Surcharges and penalties.
What should HR know to minimize risk?
HR must clearly understand that:
• Per diems in payroll are not salary but compensation.
• Tax exemption is not automatic.
• Any incorrectly configured per diem can become a significant cost for the company.
• Documentation control is as important as paying the right amount.
Can the management of per diems be automated?
Yes, but with caution.
Many software tools allow tracking travel and expenses. However:
• The final decision on whether something is exempt must be made by HR.
• Legal limits cannot be exceeded automatically.
• Software cannot determine whether a real business trip exists.
What do we recommend at GM Integra?
• Regularly review your internal per diem policy.
• Maintain full traceability of each assignment.
• Monitor the 9-month limit carefully.
• Avoid applying exemptions to profiles where they do not apply (shareholders/directors).
• Seek advice from an expert team, as an error may lead to complex inspections.
At GM Integra, we support companies with any need or question related to labour management and HR. If you want clarity, structure, and legal certainty in your processes, we can help you keep everything aligned with current regulations.
