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V2645-23 29 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Exemption for foreign work applies to Spanish tax residents

A taxpayer asks whether income from work in Switzerland is exempt from income tax and which expenses are deductible. The DGT responds that, if a taxpayer is a fiscal resident in Spain, the exemption applies with a limit of €60,100 if the conditions of the law are met.

The question raised

Question raised 1.- Whether the exemption regulated in Article 7 p) of the Personal Income Tax Law applies to income from employment obtained in Switzerland.

The DGT's ruling

To apply the exemption under Article 7 p) of the Personal Income Tax Law (LIRPF), the taxpayer must be a tax resident in Spain. The work must be performed for a non-resident entity in a territory with an analogous tax system that is not a tax haven, without it being necessary for the income to have been effectively taxed there. Regarding deductibility, contributions to foreign social security are deductible if they are mandatory for the performance of the work and equivalent to the Spanish system.

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