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V0427-20 24 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta mundial

Salaries earned by a Spanish resident working in the Netherlands may be taxable in the Netherlands

A Spanish resident with an employer in the Netherlands asks whether her salary may be taxable in that country. The DGT explains that, under the double taxation agreement, the Netherlands may tax the salary, and Spain will apply the progressive exemption method.

The question raised

Question raised: To determine whether the company must pay the corresponding taxes on its salary in the Netherlands.

The DGT's ruling

Residents in Spain are taxed on their worldwide income, without prejudice to Double Taxation Conventions. According to the Convention with the Netherlands, if employment is exercised in the Netherlands, the remuneration may be subject to taxation in that State. In such cases, Spain will exempt this income from taxation, but will treat it as exempt income with progressivity to calculate the tax rate applicable to the rest of the income.

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What is published here, applied to a company or a specific case. The first meeting is free.

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