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V1843-14 10 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Exemption from IRPF for foreign work possible with €60,100 limit

A Dutch employee residing in Spain asks whether she can claim the foreign work exemption. The DGT confirms it is possible if the conditions of the IRPF Law and the double taxation treaty are met.

The question raised

Possibility of applying the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law and the documentation to be provided to demonstrate the effective performance of work outside of Spain.

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 non-resident entity or a permanent establishment abroad. The physical displacement of the worker is required, and the workplace must be temporarily located outside of Spain. The destination country must have an analogous tax and must not be a tax haven, which is satisfied if a double taxation treaty with information exchange exists. The exemption applies to income earned during the days of stay abroad, with an annual limit of 60,100 euros.

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