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V0813-15 13 March 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Tax on worldwide income in year of move; foreign work exemption possible

A worker who resided in Spain moves to Germany in September 2014 and asks whether they must declare income from both countries. The DGT responds that, as a fiscal resident in Spain during 2014, they must pay tax on worldwide income, and German income may be exempt under certain conditions.

The question raised

Whether they are considered a tax resident in Spain in the year 2014 and whether they must include in the Personal Income Tax return for the 2014 tax period both the employment income received from the Spanish company and from the German company.

The DGT's ruling

As habitual residence was maintained in Spain until September, the taxpayer is a tax resident for the 2014 tax period and must be taxed on their worldwide income. Income from work effectively performed abroad may be exempt if provided to a non-resident entity and the country applies an analogous tax without being a tax haven. This exemption is limited to 60,100 euros per year.

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