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V0407-15 2 February 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption for foreign work may apply if conditions met

A shipping captain employed by a Portuguese company asks whether the foreign work exemption applies. The DGT states that the exemption applies to days spent abroad, provided legal requirements are met.

The question raised

Whether the exemption established in letter p) of Article 7 of the Personal Income Tax Law is applicable to you.

The DGT's ruling

The exemption under Article 7(p) of the Personal Income Tax Law requires that the work be performed for a non-resident entity and that the place of work be temporarily located outside of Spain. It is also necessary that an identical or analogous tax be applied in the territory where the work is performed and that it is not a tax haven. If work is performed in several countries, the exemption shall apply only to the remuneration corresponding to the countries that meet these requirements.

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