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V0326-15 29 January 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Workers relocated to UK may claim foreign work tax exemption under conditions

A company asks whether its workers sent to the UK to build solar parks can claim the foreign work exemption. The DGT confirms this is possible provided there is no link between the Spanish company and the UK client.

The question raised

Application of the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law.

The DGT's ruling

Employment income is exempt if earned for a non-resident entity or a permanent establishment abroad. The physical displacement of the worker and the temporary location of the workplace outside of Spain are required. It is not necessary for the income to be effectively taxed in the destination country; it is sufficient that an analogous tax applies and that it is not a tax haven. The exemption is subject to an annual limit of 60,100 euros.

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