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V2857-14 22 October 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Exemption for foreign work cannot apply if performed for the Spanish company itself

A Spanish company asks whether its employees working abroad can claim exemption for foreign work earnings. The DGT responds that this is not possible because the employees carry out their duties in the interest of the Spanish resident company.

The question raised

Applicability of the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law.

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 not resident in Spain or for a permanent establishment abroad. In this case, as the functions are performed in the interest of the resident company in Spain itself, the requirement of working for a non-resident entity is not met. Therefore, the exemption is not applicable.

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