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V1173-18 9 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Requirements for the application of the exemption for work performed abroad

A worker residing in the United Kingdom enquires whether they can apply for the exemption for work performed abroad while being a tax resident in Spain. The DGT explains the requirements for said exemption and how to prove tax residence to other administrations.

The question raised

In the event of being a tax resident in Spain, whether the exemption regulated in Article 7 p) of the Personal Income Tax Law would be applicable to you and whether, in the United Kingdom, you would be required to provide any certification of your tax residence in Spain.

The DGT's ruling

To apply the exemption under Article 7 p) of the Personal Income Tax Law (LIRPF), the work must be effectively performed abroad for a company or entity that is not resident in Spain or for a permanent establishment abroad. Furthermore, in the territory where the work is performed, a tax of an identical or analogous nature must apply, and it must not be a tax haven, which is satisfied if an agreement with an information exchange clause exists. The exemption applies to remuneration accrued during the days of stay abroad, with an annual limit of 60,100 euros. Regarding residency, Personal Income Tax taxpayers may request tax residence certificates to prove their status before the administrations of other countries.

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