Skip to content
Back to index
V0816-15 13 March 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Foreign work exemption requires existence of employment relationship

A worker and owner of a limited liability company asks whether the exemption for foreign work applies. The DGT responds that, due to effective control of the company, no employment relationship exists and thus the exemption does not apply.

The question raised

Possibility of applying the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law.

The DGT's ruling

The exemption under Article 7(p) of the Personal Income Tax Law applies only to income from employment derived from an employment or statutory relationship. In the case of individuals performing management or executive functions who possess effective control over a commercial company, the existence of an employment relationship is excluded. Without an employment relationship, it is not possible to apply the exemption for work performed abroad.

Free assessment and quote