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V3326-23 28 December 2023 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

Tax residency and income taxation for remote work depend on place of residence and place of employment

A Spanish employee working remotely from the Netherlands for a Spanish company asks about her tax residency and income taxation. The DGT explains that tax residency is determined by presence or place of activity, and that remote work abroad means income is taxed in the country of residence.

The DGT's ruling

Tax residence in Spain is determined by remaining for more than 183 days or by having the core of economic activities within Spanish territory. If the person is a resident in the Netherlands and performs telework from there, employment income is only taxed in the Netherlands, as the employment is exercised in said State. They would only be subject to Non-Resident Income Tax (IRNR) in Spain if the work were physically performed within Spanish territory.

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