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V0006-14 3 January 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Exemption for foreign work applies if conditions met in each country

A consultant asks whether their employees can claim IRPF exemption for work carried out in multiple countries for a non-resident client. The DGT responds that the exemption applies individually in each country where the legal requirements are met.

The question raised

Considering that the work is effectively performed in various countries, not only the United Kingdom, the possibility of applying the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law.

The DGT's ruling

To apply the exemption under Article 7(p) of the Personal Income Tax Law (LIRPF), the work must be performed for a non-resident entity in a territory with an analogous tax that is not a tax haven. If travel involves multiple countries, compliance with these requirements must be analyzed for each country separately. The exemption shall apply only to the remuneration corresponding to the countries where all requirements are met. It is not necessary for the income to have been effectively taxed abroad; it is sufficient that a tax of an identical or analogous nature exists.

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