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V1372-22 14 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Requirements for tax exemption on foreign work

The consultant asks whether exemption from income tax on foreign work is applicable. The DGT responds that it is not possible because the requirement that the work be carried out for a non-resident entity or a permanent establishment abroad is not met.

The question raised

Whether it is possible to benefit from the tax exemption regulated in Article 7 p) of the Personal Income Tax Law.

The DGT's ruling

To apply the exemption under Article 7 p) of the Personal Income Tax Law (LIRPF), the work must be performed for a company or entity that is not resident in Spain or for a permanent establishment located abroad. If this requirement regarding the recipient entity is not met, the exemption is not applicable, even if the work was effectively performed abroad.

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