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V2119-14 4 August 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · régimen especial

Option available for displaced workers under specific conditions

A company asks whether a worker who has resided in the UK for 10 years can qualify for the special regime for displaced workers. The DGT states this is possible if legal conditions are met, such as not having been a Spanish tax resident in the past 10 years and earnings not exceeding 600,000 euros.

The question raised

Whether the special regime for workers relocated to Spanish territory, provided for in Article 93 of the Personal Income Tax Law, shall be applicable.

The DGT's ruling

Natural persons who acquire tax residence in Spain due to job relocation may opt to be taxed under the Non-Resident Income Tax during the year of the change and the following five years. To do so, they must have been non-residents for the previous 10 years, perform the work in Spain (subject to limits on foreign income), work for an entity resident in or with a permanent establishment in Spain, and the remuneration must not exceed 600,000 euros annually. The option must be communicated to the Administration within a maximum period of six months from the commencement of the activity.

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