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V2192-21 30 July 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

The exemption for work performed abroad requires that the service be provided to a non-resident entity

DGT states that the company must apply general withholding, unless conditions for exemption due to foreign work are met.

The question raised

Subject to withholding of income from employment obtained abroad.

The DGT's ruling

To apply the exemption under Article 7 p) of the LIRPF, the work must be performed for a non-resident entity or a permanent establishment abroad. In the case of related parties, the intra-group service requirement of the corporate tax must be met. Compliance with the exemption will depend on the beneficiary of the work being the non-resident entity, regardless of whether the employing company is Spanish. Furthermore, the country where the work is performed must have an analogous tax and must not be a tax haven.

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