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V0385-15 2 February 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemptions available for foreign work income for non-resident companies

A worker posted to Germany to provide services to a German company asks whether exemption for foreign work applies. The DGT confirms it does, provided the legal requirements are met and the €60,100 limit is not exceeded.

The question raised

Application, in the income tax return for the 2013 tax period, 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 it is earned for a non-resident entity or a permanent establishment abroad in a territory with an analogous tax that is not a tax haven. For the exemption to apply, the physical displacement of the worker is required and the place of work must be outside of Spain. The exemption limit is 60,100 euros per year. In the event of double taxation, the deduction provided for in the treaty with the country or the domestic legislation shall apply.

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