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V0879-25 23 May 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Foreign work exemption requires beneficiary to be a non-resident entity

A Spanish pharmacist asks whether exemption for work done in India for a local company applies. The DGT states that the exemption depends on meeting legal requirements, particularly that the beneficiary be a non-resident entity.

The question raised

Whether the application of the exemption established in Article 7 p) of the Personal Income Tax Law is appropriate.

The DGT's ruling

To apply the exemption under Article 7 p) of the Personal Income Tax Law (LIRPF), the work must be performed for a non-resident entity or a permanent establishment abroad. The worker must physically travel outside of Spain and the workplace must be temporarily located outside the national territory. Furthermore, an identical or analogous tax must apply in the destination country and it must not be a tax haven, a requirement met if an information exchange agreement exists with Spain. The exemption shall apply to the remuneration accrued during the days of stay, with a limit of 60,100 euros per year.

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