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V1849-15 12 June 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Earnings from work in Portugal may be exempt in Spain up to €60,100 annually

A Spanish resident working for a Portuguese company asks whether income from foreign work can be exempt. The DGT confirms this is possible if legal requirements are met and the country is not a tax haven.

The question raised

Possible application of the exemption provided for in Article 7.p) of Law 35/2006 to the employment remuneration received by the applicant.

The DGT's ruling

Income from employment performed abroad is exempt if provided to a non-resident entity or a permanent establishment abroad. Furthermore, an tax of an identical or analogous nature to Personal Income Tax (IRPF) must be applied in the destination country, and it must not be a tax haven. The exemption is limited to 60,100 euros per year and applies to remuneration accrued during the days of stay abroad.

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