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V1672-23 13 June 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Taxation of foreign salary depends on fiscal residence and exemption criteria

A worker in Turkey for an international organisation asks whether their salary is subject to Spanish IRPF. The DGT explains that first, fiscal residence must be determined, and if resident, exemption for foreign work requires meeting specific conditions.

The question raised

Request for information regarding tax obligations in relation to the IRPF, specifically, whether the salary received under said contract is subject to taxation.

The DGT's ruling

Tax residence is determined by staying in Spain for more than 183 days or by having the core of economic activities in Spanish territory. If resident, the individual shall be taxed on their worldwide income, unless the exemption under Article 7.p of the LIRPF applies. For this exemption, the work must be performed for a non-resident entity, in a country with an analogous tax that is not a tax haven, and under an employment or statutory relationship. The exemption is limited to 60,100 euros per year.

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