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V1927-15 18 June 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption of €60,100 for foreign work available to a non-resident company

A Spanish resident worker provides services in Portugal for a Portuguese company. The DGT confirms that the exemption for foreign work income applies.

The question raised

Whether the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law applies to you.

The DGT's ruling

Employment income is exempt if it is earned for a non-resident entity or a permanent establishment abroad, and if an identical or analogous tax is applied in said territory, provided it is not a tax haven. It is not necessary for the income to have been effectively taxed abroad; it is sufficient that the country has an information exchange agreement with Spain. The exemption is limited to 60,100 euros per year.

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