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V2215-17 5 September 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Tax residency and foreign work exemption depend on presence and compliance

A worker who spent part of the year in Spain and then worked on cruises for a US company inquires about his tax residency, the application of the foreign work exemption, and the deductibility of his social security contributions. The DGT determines that he is tax resident due to exceeding 183 days in Spain and that social security contributions under a special agreement are deductible.

The question raised

1) Tax residency of the taxpayer.

The DGT's ruling

One is a tax resident in Spain if they remain in the national territory for more than 183 days or if the core of their activities or economic interests is located in Spain. The exemption for work performed abroad requires that the worker be a tax resident in Spain, that the work be performed for a non-resident entity, and that an analogous tax be applied in the territory where the work is performed, provided it is not a tax haven. Social Security contributions made through a special agreement are tax-deductible expenses from employment income.

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