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V2912-21 18 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Tax residency and foreign work exemption depend on presence, economic base and tax nature in destination country

A teacher moving to work in Peru asks whether she retains her Spanish tax residency and whether she qualifies for the foreign work exemption. The DGT states that tax residency depends on meeting criteria for presence, economic base or family nucleus presumption, and the exemption requires that a similar tax to the Spanish personal income tax be applied in Peru.

The question raised

1. Tax residence of the applicant in 2021.

The DGT's ruling

Tax residence is determined by staying for more than 183 days, the core of economic activities, or the residence of the spouse and children. If the absence from Spain exceeds 183 continuous days, it is not considered sporadic and does not count towards permanence. For the exemption of work performed abroad, it is necessary that the work is performed for a non-resident entity and that in the destination country a tax of an identical or analogous nature to the Personal Income Tax (IRPF) is applied. Given that there is no information exchange agreement with Peru, the existence of said tax must be proven.

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