DGT: Travel days abroad count towards Personal Income Tax (IRPF) exemption

The Directorate General of Taxes (DGT) has issued a relevant criterion for workers performing their duties outside of Spain who wish to apply the exemption on employment income established in current regulations. The inquiry focused on determining whether the day of travel counted towards the calculation of the exemption, even if the trip took place in the afternoon.

What the DGT has resolved

The body has ruled that employment income received for work effectively performed abroad also includes the days of travel to the destination country or the return to Spain. The question posed was whether a time restriction existed, specifically whether the travel day counted if the flight boarding occurred after 12:00 hours.

The answer is affirmative. The DGT points out that, following the interpretation of the Supreme Court, not including these arrival and departure days would be contrary to the regulation of the exemption provided for in Article 7 p) of the Personal Income Tax Law (LIRPF). Therefore, no restriction based on the flight time applies.

What this means for you

This criterion has a direct impact on expatriate workers or those who undertake international travel to fulfill their professional duties. If you receive income for work performed abroad, the days you dedicate to traveling to your place of work or back to Spain must be included in the calculation of the exemption.

This implies that the exemption is not limited solely to the hours of effective work activity, but extends to the travel day, regardless of whether the flight is in the morning or the afternoon. This expands the period of time that can benefit from this tax treatment under the framework of the LIRPF and the RIRPF.

What you should do

Since the application of this exemption depends on the correct accreditation of residence and the nature of the work performed, it is necessary to assess each particular situation. It is essential to have documentation that supports the travel and the performance of activities abroad to ensure that the calculation of travel days complies with what has been established by the tax authority.