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V2090-14 31 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Requirements for claiming exemption for foreign work earnings (Art. 7.p LIRPF)

A Spanish marine geophysicist asks whether he can claim the exemption for income from foreign work for a Swiss company. The DGT states that the exemption is possible if legal requirements are met and each country of assignment is individually assessed.

The question raised

Application of the exemption provided for in letter p) of Article 7 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), the work must be performed for a non-resident entity or a permanent establishment abroad. The place of work must be temporarily located outside of Spain, and an analogous tax must apply in the territory of performance, which must not be a tax haven. If work is performed in several countries, the exemption shall apply only to the remuneration corresponding to those countries that meet the requirements. The exempt income shall be that accrued during the days of stay abroad, subject to an annual limit of 60,100 euros.

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