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V1396-25 21 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Exemption for foreign work not applicable if working for a Spanish resident company

A fishing company asks whether its crew can claim exemption for work in international or third-country waters. The DGT replies that the exemption does not apply because the work is carried out for a Spanish resident company, not a non-resident entity.

The question raised

In relation to the income that the taxpayer pays to the crew members of said vessels, the ownership and operation of which correspond to the taxpayer, to determine whether the exemption regulated in Article 7 p) of the Personal Income Tax Law is applicable when operating in international waters and in the Exclusive Economic Zones (EEZ) of third countries.

The DGT's ruling

The exemption under Article 7 p) of the Personal Income Tax Law (LIRPF) requires that the work be performed for a company or entity that is not resident in Spain or for a permanent establishment abroad. In this case, as the work is performed for a Spanish company, the requirement that the recipient entity be non-resident is not met. Therefore, the exemption is not applicable even if the work is physically carried out abroad.

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