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V0575-14 5 March 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Foreign work exemption requires a labour relationship

A consultant asks whether they can benefit from the exemption for foreign work under a contract with a Polish company. The DGT responds that, as it is an independent consultancy contract rather than a labour contract, the conditions for exemption are not met.

The question raised

Possibility of applying the exemption provided for in Article 7 p) of the Personal Income Tax Law to the amounts to be received by the applicant derived from said contract.

The DGT's ruling

The exemption under Article 7.p) of the LIRPF requires that the income derives from an employment or statutory relationship. For its application, the work must be performed for a non-resident entity in a territory with an analogous tax that is not a tax haven. In this case, the self-employed nature declared in the contract prevents access to the benefit.

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