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V2498-23 18 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Requirements for the exemption of income from employment performed abroad

The DGT confirms that employees seconded to Germany for machinery setup may benefit from the exemption under Article 7(p) of the LIRPF if the work is carried out for a non-resident entity and territorial and economic thresholds are met.

The question raised

In relation to the remuneration received by personnel seconded to Germany, whether the exemption regulated in Article 7 p) of the Personal Income Tax Law is applicable.

The DGT's ruling

The exemption requires that the work be effectively performed abroad and for a non-resident entity or a permanent establishment abroad. In cases of subcontracting, the requirement is met if the final recipient of the service is the non-resident entity. It is not necessary for the income to be taxed in the destination country, provided that an information exchange agreement exists. The exemption includes specific remuneration and travel days (arrival and departure), with a limit of 60,100 euros per year.

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