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V2987-23 14 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia fiscal

Salaries earned abroad may be exempt from Spanish income tax under specific conditions

An international employee in Côte d'Ivoire asks how to declare their salary and rental income in Spain. The DGT explains that if they are a tax resident, they will be taxed on their worldwide income and may qualify for an exemption on their salary, whereas if they are a non-resident, they will only be taxed on income sourced in Spain.

The question raised

The situation of the taxpayer for Personal Income Tax purposes regarding the method of declaring their emoluments (the salary received from the International Cocoa Organization).

The DGT's ruling

If the taxpayer is a tax resident, they shall be taxed on their worldwide income, being eligible to apply the exemption under Article 7.p) of the Personal Income Tax Law (LIRPF) provided that the work is performed for a non-resident entity, in a country that is not a tax haven and where a tax similar to the Personal Income Tax (IRPF) is applied. The application of this exemption shall depend on compliance with all legal requirements. If they were a non-resident, they would be taxed in Spain only on income from Spanish sources, such as the rental of the real estate located in national territory.

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