When a company relocates an employee for several weeks, the real cost isn’t just accommodation — it’s the per diems paid on top of it. An apartment with a fully equipped kitchen doesn’t change Spain’s tax-exempt allowance limits, but it does change how much money actually leaves the company’s account each month. At BizTrip we run this calculation every week with companies looking for temporary accommodation in Madrid, so in this article we’re doing it with real numbers.
What Are Per Diems and Travel Allowances in Spain?
A per diem (subsistence allowance) is the daily amount a company pays a relocated employee to cover food and basic expenses away from their usual workplace. Spain’s tax authority (Hacienda) sets a tax-exempt limit: €53.34 per day if the employee stays overnight in Spain, and €26.67 if they don’t (Order HFP/792/2023, Article 9 of the Personal Income Tax Regulation). Anything paid above that figure is taxed as salary, both for income tax and social security purposes.
Accommodation (hotel or apartment) is a separate line item: it’s treated as a stay expense and is exempt for the amount justified by invoice, with no fixed cap. This means the savings from a fully equipped kitchen don’t come from a new tax benefit — they come from something simpler: spending less real money on eating out, regardless of which per diem model the company applies.
What’s the Problem With Per Diems When There’s No Kitchen?
When a company houses an employee in a hotel for 20, 30, or 60 days, every meal depends on restaurants, delivery, or the hotel bar. This is where the budget spirals:
- A hotel breakfast in Madrid runs between €12 and €18.
- A set lunch menu in a business district costs between €15 and €22.
- An informal dinner out runs between €18 and €25.
Adding up all three meals, an employee housed without a kitchen easily spends between €45 and €65 a day on food, an amount that in many cases comes close to or exceeds the €53.34 tax-exempt limit. If the company reimburses actual justified expenses, it pays that full amount every day. If it applies a fixed per diem, the employee usually falls short and ends up eating worse or requesting an extra payment. This is exactly the scenario many companies describe to us before switching to a BizTrip apartment with its own kitchen.
How Much Do You Actually Save With a Fully Equipped Kitchen?
With a BizTrip apartment with a fully equipped kitchen, the employee can have breakfast and dinner at the accommodation itself without giving up eating well, and reserve the restaurant budget for lunch, which is usually unavoidable due to work schedules.
Example: an employee relocated to Madrid for 30 days
| Item | Hotel Without a Kitchen | Apartment With a Kitchen |
| Breakfast (30 days) | 30 × €15 = €450 | 30 × €3 (self-prepared) = €90 |
| Lunch (30 days) | 30 × €18 = €540 | 30 × €18 = €540 (stays outside) |
| Dinner (30 days) | 30 × €20 = €600 | 30 × €6 (home-cooked) = €180 |
| Total real food cost | €1,590 | €810 |
| Monthly savings per employee | — | €780 |
The exact figure varies by habits and city, but the pattern repeats across every case we manage: the kitchen doesn’t reduce Hacienda’s tax-exempt limit, it reduces the real expense the company pays or reimburses. For a company relocating 5 or 10 people a month, that difference adds up to several thousand euros per quarter, without touching a single line of tax policy.
There’s a second, less visible but equally real saving: when the employee cooks, they stop generating restaurant receipts that someone in administration has to review, justify, and reconcile against the exempt limit. Fewer receipts means fewer hours of admin work and less risk of errors on Form 190. Companies that manage accommodation through BizTrip tell us exactly this: less administrative burden on top of the direct savings on the bill.
How to Structure Your Per Diem Policy When Accommodation Includes a Kitchen
If your company houses employees in a BizTrip apartment with a kitchen, it’s worth adjusting your per diem policy rather than keeping the same amount you’d use for a hotel:
- Distinguish between short and long relocations. For 2–3 days, a full per diem makes sense — it’s not worth buying groceries for such a short stay. For stays longer than two weeks, the kitchen changes the calculation.
- Offer a reduced or “lunch-only” allowance when the accommodation includes a kitchen, and make it clear that breakfast and dinner are covered by the employee using the budget saved on accommodation.
- Document the criteria in writing. Hacienda requires that the allowance correspond to an actual relocation and be justified; having a clear internal policy avoids disputes and simplifies inspections.
- Review the difference between actual expense and fixed per diem. If you reimburse actual expenses, the kitchen directly reduces the bill. If you pay a fixed per diem within the exempt limit, the employee captures the savings, but the company gains in satisfaction and retention at no extra cost.
Why Companies Choose BizTrip
At BizTrip we work every day with companies managing relocations lasting weeks or months, and we know that accommodation isn’t just a bed — it’s a direct lever on the travel budget. All of our monthly rental apartments in Madrid include a fully equipped kitchen, so every relocated employee can keep their usual eating routine without relying on a hotel bar or ordering delivery every day.
Beyond the savings on food, at BizTrip we offer temporary accommodation in Madrid with flexible contracts, locations close to the main business districts, and a booking process designed for companies that need to manage several employees at once without administrative hassle. You can see all our available areas on our locations page.
If your company manages recurring relocations, now is the time to review how much you’re overpaying by not having a kitchen in the accommodation. At BizTrip we can help you calculate that saving based on your actual relocation volume: check availability and rates for companies.










