Back to index
V4924-16 15 November 2016 · SG de Fiscalidad Internacional Criterion in force
IRPF · exención por trabajos en el extranjero

Exemption for work performed abroad may apply if Article 7(p) LIRPF requirements are met

An employee seconded to Germany has enquired whether they can claim the exemption for work performed abroad while remaining a tax resident in Spain. The DGT has ruled that, provided the requirements are met—specifically that the work is performed for a non-resident entity in a country with an information exchange agreement—remuneration is exempt up to an annual limit of €60,100.

The question raised

Question raised: The consultant poses, in the event that they could not prove tax residence in Germany and continued to be considered a tax resident in Spain in 2016 or 2017, whether they would be entitled to the application of the exemption under Article 7.p) of the LIRPF for work performed abroad.

The DGT's ruling

To apply the exemption under Article 7.p) of the LIRPF, the work must be performed for a company or entity not resident in Spain or a permanent establishment abroad. It is also necessary that an tax of an identical or analogous nature is applied in the territory where the work is performed and that it is not a tax haven. In this case, as the recipient entity is non-resident and unrelated, and given the existence of a treaty with Germany, the requirements for the exemption are met with a limit of 60,100 euros per year.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact