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V1317-15 29 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Requirements for claiming IRPF exemption for foreign work

A wind maintenance company asks whether its technicians deployed abroad can claim the exemption under article 7.p) of the IRPF law. The DGT states that the exemption applies if the work is carried out for non-resident entities in countries with taxes analogous to IRPF or double taxation agreements.

The question raised

Question raised: Whether the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law applies to the employment income received by the technicians seconded abroad by the applicant.

The DGT's ruling

To apply the exemption, the work must be performed for a non-resident entity or a permanent establishment abroad. The territory where the work is performed must have a tax of an identical or analogous nature to the Personal Income Tax (IRPF) and must not be a tax haven. The tax requirement is considered met if a double taxation treaty with an exchange of information clause exists. The exemption is limited to 60,100 euros per year and is incompatible with the regime of excluded excess income.

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