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V2960-21 22 November 2021 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

Earnings tax depends on fiscal residence and place of work

A Spanish employee working from France asks how to tax his earnings from remote work. The DGT explains that taxation varies depending on whether the worker is a fiscal resident in Spain or France, under the Spanish-French Double Taxation Agreement.

The DGT's ruling

If the taxpayer is a tax resident in Spain, they shall be taxed on their worldwide income, and France may tax the portion of work performed there. If they are a resident in France, they shall only be taxed in Spain on Spanish-source income (work physically performed in Spain) through the Non-Resident Income Tax (IRNR). In the event of a conflict of residence, the tie-breaker rules of the Spain-France Convention shall apply.

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