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V4925-16 15 November 2016 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

Remuneration of Turkish Embassy employees only taxable in Spain if specific Convention requirements are met

The Turkish Embassy has requested a ruling on whether its employees (local staff and service staff) are subject to Spanish Personal Income Tax (IRPF). The Directorate-General for Taxes (DGT) examines whether the requirements of the Spain-Turkey Double Taxation Convention are met to allow Spain to tax such income, or if the taxing rights belong exclusively to Turkey.

The question raised

Question posed The taxpayer raises the following questions:

The DGT's ruling

According to the Spanish-Turkish Convention, remuneration for services rendered to the Turkish State is only taxable in Spain if the employee is a tax resident in Spain and meets the following conditions: they are a Spanish national or did not acquire residence solely to provide those services. If these requirements are not met, the income may only be subject to taxation in Turkey. In the event of undue taxation in Spain, employees may request the rectification of their tax returns to obtain a refund.

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