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V4543-16 20 October 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Tax declaration obligation depends on nature of foreign work income and property rental

A taxpayer asks whether they must file a tax return after earning work income in Spain and France, as well as property income. The DGT explains that the obligation depends on whether foreign work income qualifies for exemption and the nature of property income.

The question raised

Whether there is an obligation to file a Personal Income Tax return for the 2015 tax period.

The DGT's ruling

If real estate income constitutes imputed real estate income, the taxpayer must declare if their taxable employment income exceeds 12,000 euros. The exemption for work performed abroad requires that such work be performed for a non-resident entity or through intra-group services that generate profit for a non-resident entity. Services provided to a Spanish subsidiary do not qualify for said exemption. If the exemption applies and the taxable income does not exceed the legal limits, there would be no obligation to file a tax return.

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