Doctrine by topic · DGT Observatory

Income Earned: 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

Refined position Medium confidence 10 rulings · 2015–2026

Current position

Companies domiciled in Ceuta or Melilla with material and human resources in these territories may apply the tax relief provided in Article 33 of the LIS (Corporate Income Tax Law). This right is maintained even if the clients are not located in said territories. Furthermore, the tax relief is applicable without the income needing to respect the threshold of 50,000 euros per employee.

The DGT's position shows an evolution towards the expansion of tax benefits in Ceuta and Melilla. It has moved from a system with strict limits per employee and per type of activity to a criterion that allows the tax relief based on the presence of material and human resources, regardless of the location of the clients or the income thresholds per worker.

Turning points

  1. V5489-26

    Eliminates the restriction on income thresholds per employee and allows the tax relief even if the clients do not reside in Ceuta or Melilla.

Analysis based on 10 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10
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
V0717-23 24 Mar 2023

Treasury Bill yields do not qualify for La Palma residency tax deductions

SG de Impuestos sobre la Renta de las Personas Físicas
deducción por residenciarentas obtenidasletras del tesororesidencia habitual y efectivarendimientos del capital mobiliario LIRPF — Ley 35/2006 del IRPF art. 68.4.3.fLIRPF — Ley 35/2006 del IRPF art. 68.4.3.i
Affects CompanyExpat · Non-residentIndividual
V0019-17 3 Jan 2017

Rents from a US LLC must be included in Spanish corporate tax base

SG de Impuestos sobre las Personas Jurídicas
base imponibledoble imposiciónllcrentas obtenidasconvenio de doble imposición LGT — Ley 58/2003 General Tributaria art. 88.1LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V3555-15 17 Nov 2015

Bonus on revenues in Ceuta or Melilla possible with fixed business location

SG de Impuestos sobre las Personas Jurídicas
bonificaciónciclo mercantilcomercio al por mayorlugar fijo de negociosrentas obtenidas LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 33LGT — Ley 58/2003 General Tributaria art. 88.3
Affects CompanyExpat · Non-residentIndividual

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