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V2614-22 23 December 2022 · SG de Fiscalidad Internacional Criterion in force
IRPF · teletrabajo

Income of a Spanish remote worker for a Swiss company is taxable in Spain

A Spanish resident working fully remotely for a Swiss company seeks advice on taxation. The DGT states that since the employment is physically carried out in Spain, the income is subject to taxation in Spain under the Spanish-Swiss Double Taxation Agreement.

The DGT's ruling

According to Article 15 of the Convention between Spain and Switzerland, the salaries of an employee resident in Spain are only taxed in Spain, unless the employment is exercised in Switzerland. The place where the employment is exercised is where the employee is physically present while performing the activities. Therefore, teleworking performed from Spain implies that the employment is exercised in Spain, and it is irrelevant whether the proceeds are received from a Swiss company. The Swiss company should not apply withholdings in Switzerland and, if it were to do so, the deduction for double taxation could not be applied in Spain.

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