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V0703-20 3 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Requirements for exemption from foreign work income

A taxpayer asks whether they can claim the exemption under article 7 p) of the LIRPF for income from a non-resident company. The DGT states that compliance cannot be assessed due to lack of information on the nature of the employment relationship and the location of work performance.

The question raised

Question raised Regarding the income that would be received in 2020 from the non-resident company in Spain, whether the exemption regulated in Article 7 p) of the Personal Income Tax Law would be applicable.

The DGT's ruling

The exemption under Article 7 p) of the Personal Income Tax Law (LIRPF) only applies to income derived from an employment or statutory relationship. For its application, it is required that the work is effectively performed abroad, involving the displacement of the worker and a temporary place of work outside of Spain, for a non-resident company or a permanent establishment abroad. It is not necessary for the income to be taxed in the destination country; it is sufficient that a tax of an identical or analogous nature is applied and that it is not a tax haven.

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