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V1820-20 8 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption for foreign work cannot be applied if country is a fiscal paradise

The consultant asks whether exemption from foreign work income can be claimed due to services rendered in Lebanon. The DGT responds that it is not possible as Lebanon is classified as a fiscal paradise.

The question raised

Question posed: Whether it is possible to avail of the 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), it is a requirement that a tax of an identical or analogous nature is applied in the territory where the work is performed and that it is not a tax haven. Since Lebanon is considered a tax haven under Spanish legislation, the exemption cannot be applied even if the other requirements are met.

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