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V0520-22 14 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption for foreign work cannot be claimed if country is a fiscal haven

The consultant asks whether exemption for foreign earnings can be claimed due to work in Lebanon. The DGT responds that it is not possible because Lebanon is considered a fiscal haven under Spanish law.

The question raised

Whether it is possible to avail of the exemption regulated in Article 7 p) of the Personal Income Tax Law.

The DGT's ruling

To apply the exemption under Article 7.p) of the Personal Income Tax Law (LIRPF), it is a requirement that an identical or analogous tax be applied in the territory where the work is performed and that it is not a tax haven. Lebanon is considered a tax haven under Spanish legislation pursuant to Royal Decree 1080/1991. Failure to comply with this requirement renders the exemption inapplicable.

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