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V1285-14 13 May 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Tax declaration obligation in Spain depends on fiscal residence and work location

A worker employed by a Spanish company but residing and working in France asks whether he must declare his income in Spain. The DGT responds that the obligation depends on his fiscal residence and whether the activity takes place in Spain.

The question raised

Whether they have an obligation to declare in Spain (either via Personal Income Tax or Non-Resident Income Tax) the employment income received derived from said contract.

The DGT's ruling

If they are a tax resident in Spain, they will be taxed on their worldwide income, although the Convention with France may limit taxation in Spain if the employment is exercised in France under certain requirements. If they are a non-resident, they will only be taxed in Spain on employment income derived from a personal activity carried out in Spanish territory. Given that the inquirer works in France, their income would not be taxed in Spain if they are a non-resident.

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