How to link images relatively in Inkscape?

1. Insert linked image
2. Open XML editor and select the image
3. Change the xlink:href attribute to be relative instead of absolute. For example, if your image is in the same directory as your svg file, then the value for xlink:href would look something like this: "./MyPic.jpg"

Example diff:

<        xlink:href="file:///home/foouser/svg/20150721_210652-0.JPG"
---
>        xlink:href="20150721_210652-0.JPG"

After saving, closing, and moving your svg file along with your image file, Inkscape should still display the image in your file. Also note that after re-opening, Inkscape will keep the xlink:href attribute, but also maintain a separate attribute called sodipodi:absref that will store the absolute location of the image. I've found that this doesn't matter -- you can still move your files around and Inkscape will refer to the xlink:href attribute to find your image.

Tested on Inkscape 0.48