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V2616-14 6 October 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Exemption of foreign earnings and deductibility of foreign social security

A Spanish resident working for a UK company asks about her tax residency, exemption for foreign work, and deductibility of expenses. The DGT states that physical days worked abroad are exempt up to a limit, while days worked from Spain are not.

The question raised

1. Tax residence of the applicant in the year 2013 and subsequent years.

The DGT's ruling

Income from work actually performed abroad is exempt if provided to a non-resident entity in a country with an information exchange agreement, up to an annual limit of 60,100 euros. The exemption only applies to days spent abroad, not to services rendered from Spain. Foreign social security contributions linked to the work are deductible expenses. Travel, subsistence, or accommodation expenses incurred by the worker are not deductible.

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