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V2454-14 18 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Requirements for exemption from foreign work income

A Spanish resident worker is sent by his employer to Saudi Arabia and England. The question is whether he can benefit from the exemption for foreign work under paragraph 7(p) of the LIRPF.

The question raised

Whether the application of the exemption established in letter p) of Article 7 of Law 35/2006, of November 28, on Personal Income Tax is appropriate.

The DGT's ruling

To apply the exemption under Article 7(p) of the LIRPF, the work must be effectively performed abroad, with the place of work established outside of Spain. Services must be provided to a non-resident entity or, if a relationship exists, an intra-group service must be proven that produces an advantage or benefit to the recipient entity pursuant to the TRLIS. Finally, the destination country must apply a tax analogous to the IRPF and must not be a tax haven, the latter being satisfied if an information exchange agreement exists.

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