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V1291-21 7 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Fiscal residency based on presence or economic interests; foreign work exemption requires intergroup services

A worker providing services entirely in Algeria seeks advice on fiscal residency and the application of the foreign work exemption. The DGT states that residency depends on presence or economic base criteria, and that the exemption requires services to be rendered to a non-resident entity or a permanent establishment.

The question raised

Tax residence of the taxpayer.

The DGT's ruling

Tax residence is determined by staying for more than 183 days (counting sporadic absences unless proof of residence in another country is provided) or by the core of economic activities in Spain. To apply the exemption under Article 7 p) LIRPF, the work must be effectively performed abroad for a non-resident entity or a permanent establishment abroad, and in a country with an analogous tax that is not a tax haven. In cases of intra-group services, it must be verified that the service generates a profit for the non-resident entity.

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