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V3794-16 9 September 2016 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

German employee working from Spain taxed in Spain if resident here

A Spanish resident working remotely for a German company asks where tax liability applies. The DGT states that income from work carried out in Spain is taxable in Spain, although Germany may tax the portion of work performed physically in Germany.

The question raised

The applicant raises the following questions:

The DGT's ruling

Work performed from a private residence in Spain is considered to be exercised in Spain. If the worker is a tax resident in Spain, the income from such work shall be taxed in Spain, except for the proportional part derived from the days of work physically performed in Germany. In the event of double taxation, Spain must eliminate it in accordance with the Spanish-German Convention.

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