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V2481-15 5 August 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption not applicable for foreign work contracts with a Spanish resident entity

A researcher asked whether income from a research project in the US could be exempt from income tax. The DGT states that since the contract was signed with a Spanish public university, the exemption conditions are not met.

The question raised

Possibility of applying to the scholarship received the exemption established in letter p) of Article 7 of Law 35/2006, of November 28, on Personal Income Tax.

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 company or entity that is not resident in Spain or for a permanent establishment abroad. Although the worker physically travels outside Spanish territory, if the contract is maintained with a resident entity, the legal requirements are not met. Therefore, income derived from a contract with a Spanish university does not benefit from this exemption.

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