Doctrine by topic · DGT Observatory

Deduction for Income in Ceuta or Melilla: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 13 rulings · 2017–2025

Current position

Residents in Ceuta or Melilla may deduct 60% of the proportional tax liability corresponding to the income obtained in said territories. If they maintain their habitual residence for at least three years, they may include income obtained elsewhere if at least one-third of their net worth is located in the city. Employment income is considered to be obtained there if the activity is physically performed within the territory, even in a remote modality.

The DGT's position remains constant regarding the application of the deduction, focusing its analysis on the accreditation of habitual residence and the location of the income. The requirements for including external income have been specified through the net worth criterion, and it has been clarified that remote work performed from the city generates local income.

Turning points

  1. V3098-18

    Establishes that income from companies operating effectively and materially in Ceuta or Melilla, with exclusive domicile and corporate purpose, is considered income obtained in said cities.

  2. V0468-23

    Defines that the maximum amount of the deduction for external income shall be the net amount of the yields and capital gains obtained in Ceuta or Melilla.

  3. V1853-25

    Clarifies that income from an external company is considered income obtained in the city if the worker performs their activity remotely entirely from the territory.

Analysis based on 12 of 13 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

13
V1853-25 14 Oct 2025

60% deduction applicable in Melilla for remote work earnings

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por rentas en ceuta o melillaresidencia habitual y efectivarendimientos del trabajotrabajo remotocuota íntegra LIRPF — Ley 35/2006 del IRPF art. 68.4
Affects CompanyExpat · Non-residentIndividual
V0522-25 28 Mar 2025

Deduction for Ceuta or Melilla income not available without habitual residence

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por rentas en ceuta o melillaresidencia habitual y efectivarendimientos del trabajopensionescuota íntegra LIRPF — Ley 35/2006 del IRPF art. 68.4LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V3079-21 9 Dec 2021

Bank balances in mainland entities cannot be treated as assets located in Ceuta

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por rentas en ceuta o melillapatrimonio netoresidencia habitual y efectivainstituciones financierasrendimientos de depósitos LIRPF — Ley 35/2006 del IRPF art. 68.4.1.bLIRPF — Ley 35/2006 del IRPF art. 68.4.3.i
Affects CompanyExpat · Non-residentIndividual
V2434-20 16 Jul 2020

Residency requirements for the tax deduction on income earned in Ceuta or Melilla

SG de Impuestos sobre la Renta de las Personas Físicas
residencia habitual y efectivadeducción por rentas en Ceuta o Melillacentro de interesesperiodo impositivorendimientos del trabajo LIRPF — Ley 35/2006 del IRPF art. 68.4LIRPF — Ley 35/2006 del IRPF art. 72.1
Affects CompanyExpat · Non-residentIndividual

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