TLDR: Employees can deduct moving expenses (transport of people and directly related costs) if they change residence for a new job or a new geographical assignment. This deduction is excluded in case of retirement, even with a tied accommodation.
Who can benefit?
The deduction is reserved for employees who must change residence for the needs of a new job or a new geographical assignment within their current employment. It only applies if the move is required for professional reasons.
Which expenses are deductible?
Only expenses directly related to the move are eligible:
- Transport costs for people (including family);
- Costs of the move itself (movers, packing, etc.).
Exclusions
Moving expenses are not deductible in the following cases:
- Move related to retirement, even if the employee had tied accommodation;
- Move for personal or non-professional reasons.
General conditions
To benefit from the deduction, expenses must be justified by supporting documents (invoices, contracts, etc.). The deduction falls under the actual professional expenses provided for in Article 83 of the CGI.
Declaration procedures
Moving expenses are declared as part of the deduction of actual expenses for employees. They must be included in the calculation of net taxable income, subject to providing the necessary supporting documents.
Limits and clarifications
- The deduction is excluded for self-employed workers or non-employees;
- It does not cover double residence costs or expenses not directly related to the move;
- The rules apply only to employees under an employment contract.