60% Tax Deduction in Melilla for Remote Workers

The Directorate General of Taxes (DGT) has issued a relevant ruling for residents in Melilla who perform their job functions remotely. The inquiry focused on determining whether income derived from an employment relationship with a company located outside the city allows access to the tax benefits provided for this territory.

What the DGT has ruled

The body has clarified that employment income is considered obtained in Ceuta or Melilla as long as it derives from activities physically performed in said territories. In this sense, if a worker carries out their activity entirely remotely from Melilla, the income received from a company located, for example, in Madrid, must be considered income obtained in Melilla.

Upon confirming the location where the income is obtained, the taxpayer is entitled to apply the 60% deduction of the full tax liability, both state and regional, proportional to said income, in accordance with current regulations.

What this means for you

This ruling has a direct impact on residents in Melilla who work for companies located in other autonomous communities through teleworking. The key lies not in the location of the employer company's headquarters, but in the place where the worker effectively carries out their professional activity.

If your activity is carried out entirely from the Melilla territory, your employment income is included in the taxable base under the city's residency and income-obtaining conditions, which enables the use of the deduction provided for in the Personal Income Tax Law (Ley del Impuesto sobre la Renta de las Personas Físicas).

What you should do

It is essential that remote workers in Melilla possess documentation that proves the effective performance of their activity within the territory. The correct delimitation of where the service is provided is the determining factor for the application of this tax benefit. Since each employment situation presents particularities, it is necessary to assess each case individually to ensure compliance with legal requirements.