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V0057-23 17 January 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · teletrabajo

Income from remote work for Swiss or German companies taxed in Spain if work is carried out in Spain

A Spanish resident asks how salaries earned from remote work for a Swiss or German company are taxed. The DGT responds that since the work is physically carried out in Spain, the income is only taxed in Spain as work-related income.

The question raised

How the Personal Income Tax must be levied.

The DGT's ruling

If the worker is a tax resident in Spain and performs telework entirely from their residence in Spain, the employment is understood to be exercised in Spain. According to the treaties with Switzerland and Germany, the remuneration is only taxed in Spain, regardless of whether the paying company is foreign. These earnings are considered income from employment pursuant to the LIRPF. The foreign company shall only have an obligation to withhold if it operates in Spain through a permanent establishment or under the provisions of the RIRPF.

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