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V0477-15 6 February 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption available for foreign work up to €60,100 in IRPF

A Spanish company asks whether its employees sent to France can benefit from the exemption for foreign work. The DGT confirms that yes, provided legal requirements are met and the recipient entity is non-resident.

The question raised

Application to workers' remuneration of the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law. And, if applicable, whether the company is not obliged to apply IRPF withholding on the exempt remuneration.

The DGT's ruling

Employment income is exempt if earned for a non-resident entity or a permanent establishment abroad, in a country with an analogous tax and which is not a tax haven. For the work to be considered performed abroad, there must be a displacement and the place of work must be temporarily located outside of Spain. The exemption is limited to 60,100 euros per year and there is no obligation to apply withholding tax on the exempt income.

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