Doctrine by topic · DGT Observatory
How the DGT's position on this topic has evolved, and the rulings it rests on.
Current position
The existence of effective control over a commercial company excludes the nature of an employment relationship for those performing management or executive functions. This prevents access to tax benefits reserved for employees, such as the exemption for work performed abroad or the reduction for disability. In these cases, the services provided are considered self-employed activities or income in kind.
The DGT's position has remained constant since 2014, applying the criterion that effective control breaks the employment relationship. Throughout various rulings, this interpretation has been extended to different benefits, from the exemption under article 7.p) LIRPF (Personal Income Tax Law) to the application of disability reductions and the treatment of insurance premiums. The doctrine is uniform in linking effective control with exclusion from the employment regime.
Analysis based on 16 of 16 rulings with a stated position. Updated 26 September 2026.