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V2876-14 27 October 2014 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

Salaries taxation in UAE depends on worker's fiscal residence and nationality

A worker moving to Dubai asks how his salary and housing expenses in Spain will be taxed. The DGT explains that his fiscal residence will depend on his presence and that, under the double taxation treaty, he will only be considered a resident in the UAE if he holds UAE nationality.

The question raised

The consultant raises the following questions:

The DGT's ruling

If the consultant is a resident in Spain, they shall be taxed on their worldwide income, including salaries in Dubai and the imputed income from their Spanish residence, applying the elimination of double taxation. According to the Spain-UAE Convention, only nationals of the United Arab Emirates may be considered residents of that State for the purposes of the treaty. If they are not a resident in Spain, they shall only be taxed on employment income earned in Spanish territory and on the imputed income from their urban property.

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