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V1642-15 27 May 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Requirements for claiming exemption for work abroad

A worker posted to the U.S. to provide services to a group company asks whether the exemption under article 7 p) of the LIRPF applies. The DGT confirms it does, if the work is genuinely carried out abroad, for a non-resident entity in a country with an information exchange agreement, with a cap of €60,100.

The question raised

Question raised: Given that, by residing in Spain for more than 183 days during the 2014 fiscal year, the worker would be considered a tax resident in Spain for said period, the possibility of applying the exemption established in Article 7 p) of the Personal Income Tax Law.

The DGT's ruling

The exemption under Article 7 p) of the Personal Income Tax Law (LIRPF) requires that the work be effectively performed abroad, for a non-resident entity or a permanent establishment abroad, and in a territory with an analogous tax that is not a tax haven. If the recipient entity is related, there must be an intra-group service that produces an advantage or benefit to the non-resident entity, pursuant to Article 16 of the Corporate Income Tax Law (TRLIS). The exemption applies to remuneration accrued during the days of stay and to specific remuneration, with a limit of 60,100 euros per year.

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