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V0181-21 4 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRNR · residencia fiscal

Non-resident worker earning abroad: no IRNR withholding

A Spanish employee working in Switzerland and residing in France asks whether her employer should withhold IRNR. The DGT explains that if the worker loses Spanish tax residency, the employer may apply IRNR withholding through a specific procedure. However, if the work is actually performed outside Spain, income is not subject to IRNR.

The question raised

The type of IRPF withholding that the company must apply in its payroll, and whether it is necessary to carry out any procedure with the AEAT.

The DGT's ruling

If the employee loses tax residence in Spain, the company must apply Personal Income Tax (IRPF) withholdings unless the employee notifies the Administration of their change of residence so that Non-Resident Income Tax (IRNR) may be applied. If the employee opts for IRNR, the company shall apply withholdings according to the date indicated in the supporting document issued by the AEAT. However, if the employee is a non-resident and the work is effectively performed outside of Spain, the income is not considered to be obtained within Spanish territory and is not subject to IRNR withholding.

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