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V2391-14 11 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

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

An employee seconded by his Spanish company to Colombia and France asks whether he can claim the exemption for work abroad. The DGT states that the exemption applies only if the work is carried out for a non-resident entity or a permanent establishment and the country is not a tax haven.

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 in Spain or a permanent establishment abroad. In the case of related entities, the intra-group service requirement must be met. Furthermore, the country where the work is performed must have an analogous tax and must not be a tax haven, which is satisfied if a double taxation treaty with an information exchange clause exists. The exemption is limited to 60,100 euros per year.

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