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V2883-23 26 October 2023 · SG de Fiscalidad Internacional Criterion in force
IRPF · rentas del trabajo

Salaries of a remote worker resident in Spain are taxable in Spain unless work is also carried out in the UK

A worker resident in Spain asks whether her UK employer has tax or withholding obligations due to remote work. The DGT states that the query about the employer is inadmissible, but clarifies that the worker will be taxed in Spain on her worldwide income and examines when the UK company should withhold income tax.

The DGT's ruling

The salaries of a resident in Spain may only be subject to taxation in Spain, unless the employment is also performed in the United Kingdom. If part of the work is performed in the United Kingdom, there would be shared taxation if the exemption requirements of the Convention are not met. For the British company to be obliged to withhold Personal Income Tax (IRPF) in Spain, it must operate in Spanish territory, whether with or without a permanent establishment.

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