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V3216-14 1 December 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Requirements for exemption of foreign work income

A Spanish employee travels abroad to perform training, marketing and negotiation duties for group subsidiaries. The DGT examines whether such income is exempt from personal income tax under paragraph p) of Article 7.

The question raised

Whether the application of the exemption established in letter p) of article 7 of Law 35/2006, of November 28, on Personal Income Tax is appropriate.

The DGT's ruling

The exemption requires that the work be effectively performed abroad, for a non-resident entity or permanent establishment, and in a country with an analogous tax that is not a tax haven. In the case of intra-group services, there must be an advantage or benefit for the non-resident entity, understood as a service if an independent company would have paid for it. The exemption does not apply to the portion of the services corresponding to benefits provided to the Spanish entity. The exemption limit is 60,100 euros per year.

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