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V0951-21 19 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Taxation of remuneration depends on fiscal residence and type of activity

A consultant resident in Andorra works for Spanish companies as advisor and director. The DGT examines their taxation based on whether they are a fiscal resident in Spain or in Andorra.

The question raised

Liability to taxation in Spain of the remuneration received. If so, which tax and at what rate.

The DGT's ruling

If resident in Spain, they are taxed on their worldwide income under Personal Income Tax (IRPF) as employment income, including director's remuneration. If resident in Andorra, advisory income earned in Andorra is exempt in Spain under the Convention, but director's remuneration is taxed in Spain under Non-Resident Income Tax (IRNR) at a rate of 24%.

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