COUNTRY FACTSHEET
Expense Compliance in Spain
Country Demographics
VAT rates
In Spanish, VAT is known as Impuesto sobre el Valor Añadido. It is a levied general consumption tax applied directly on the sale of goods and services.
The different VAT rates in Spain are:
| Rate | Type | Goods and services |
| 21% | Standard | All goods and services, except those excluded |
| 10% | Intermediary | Basic necessities such as certain foods; passenger transport; certain cultural events; hotel and restaurant; certain pharmaceutical products; certain social housing; (find the extensive list for 2025) |
| 4% | Reduced | Basic necessities such as bread, milk, books, medicine; certain construction work on new buildings; certain domestic care services (find the extensive list for 2025) |
| 0% | Zero | Certain gold coins, bars and intra-community and international transport (find the extensive list for 2025) |
Per Diem Rates
In Spain, employers can offer per diems as compensation for expenses incurred during business trips (that leave the normal municipality of their workplace), such as lodging expenses, meals, mileage and other maintenance. Per diems are tax-free up to a certain amount as they are not considered part of an employee’s pay.
These tax-free allowances can be used up until 9 months. If the business trip lasts longer than 9 months, allowances will be subject to tax.
Depending on whether the employee stays overnight as part of this trip or not, the maximum amounts of per diem compensation differ.
Without an overnight stay
When employees do not stay overnight in private accommodation, the allowances for per diems are:
- For travel within Spanish territory: Maximum of €26.67 per day
- For travel outside of Spain: Maximum of €48.08
With an overnight stay
Rates for assignments within the State:
Subsistence expenses, hospitality establishments for example, must be justified with receipts and/or documentation if the overnight stay is in a different municipality.
Exemption: If employees, drive a vehicle that transport goods by road, they do not have to justify accommodation expenses up to €15 per day for travel within Spain and up to €25 per day for travel outside of Spain.
Employees receive an allowance for living expenses, which are not defined by the Agencia Tributaria. The amounts are different depending on whether the stay is within Spain or in foreign territory:
- For travel within Spanish territory: Maximum €53.34 per day
- For travel outside of Spain: Maximum €91.35 per day
Record Keeping
In Spain, you are required to keep evidence of your business expenses for a minimum of four years.
Companies using expense management tools in Spain need to receive a certification from the AEAT, the Spanish public administration organisation, to allow users to use digital receipts without having to keep the original paper receipts.
2025 compliance rules for digital record-keeping
The 2025 compliance rules for digital record-keeping and paperless systems are governed by Real Decreto 1007/2023, which sets strict requirements for electronic invoicing and record-keeping systems used by businesses and professionals.
This states that:
- Documents must be kept in standardised digital formats in a software that complies with specific standards to ensure consistency and integrity in record-keeping.
- Invoices must be issued for all transactions and securely stored in a non-modifiable format.
- The systems must have direct integration with the Spanish tax agency (Agencia Tributaria) without alterations.
- To prevent tax fraud, the law prohibits modifications to digital records once they are generated and requires traceable, verifiable data structures (e.g., QR codes, digital signatures).
Mileage
Employers can reimburse employees for an expense incurred using their own personal vehicle for business journeys. This does not include the commute from home to work.
The maximum amount of tax-exempt allowance is 0.26€ / km (as of July 2023).