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V0942-15 26 March 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Foreign research contract earnings taxed in IRPF if Spanish fiscal residence maintained

A Spanish researcher on a contract with a Spanish university asks how her salaries earned during stays in the UK and Belgium will be taxed. The DGT explains that if she maintains fiscal residence in Spain, she must pay tax on her world income through IRPF and apply the withholding system.

The question raised

Question posed: Tax residence of the consultant and the tax treatment of remunerations derived from the employment contract, clarifying whether they must be taxed and subject to withholding in accordance with the regulations of Personal Income Tax or Non-Resident Income Tax.

The DGT's ruling

If the consultant is a tax resident in Spain, they shall be taxed on their worldwide income under Personal Income Tax (IRPF), including employment income obtained abroad. In the event of a conflict of residence, the double taxation treaties with the United Kingdom or Belgium shall apply. If they are not a tax resident in Spain, the income from the Spanish university is not taxed in Spain as it derives from an activity carried out abroad.

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