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V0626-15 20 February 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Exemption for foreign work up to €60,100 annual limit

A Spanish resident asks whether exemption for foreign work applies, regarding applicable amounts and compatibility with meal allowances. The DGT confirms it applies if the conditions are met, including the amount limit and compatibility with meal allowances.

The question raised

Whether the exemption provided for in Article 7 p) of the Personal Income Tax Law is applicable, regarding which concepts (salary, remuneration for hours taught, and per diems not exempt from taxation) and with what limit. Whether said exemption is compatible with the regime of per diems exempt from taxation.

The DGT's ruling

The exemption under Article 7 p) of the Personal Income Tax Law (LIRPF) applies to income derived from an employment relationship performed for a non-resident entity or a permanent establishment abroad. It requires that the work be physically performed outside of Spain and in a territory with an analogous tax that is not a tax haven. The exemption includes specific compensation for relocation and non-specific compensation accrued during the days of stay, calculated through proportional distribution, with an annual limit of 60,100 euros. It is compatible with the per diem regime under Article 9.A.3.a) of the Personal Income Tax Regulations (RIRPF).

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