17. Work income received for work actually carried out abroad, with a limit of 60,100 euros per year

Regulations: Articles 7.p) Law IRPF and 6 Regulation IRPF

Requirements

from work actually performed abroad is exempt when the following requirements met:

a) That the work is carried out for a company or entity not resident in Spain or a permanent establishment located abroad .

In particular, when the entity receiving the work is linked to the entity that employs the worker or to the entity in which the worker provides his or her services, the work will be deemed to have been performed for the non-resident entity when, in accordance with the provisions of article 16.5 of the Corporate Income Tax Law, it can be considered that an intra-group service has been provided to the non-resident entity because the aforementioned service produces or may produce an advantage or utility for the recipient entity.

Note: For the application of this exemption to income obtained abroad by officials posted to international organizations, see Supreme Court ruling 428/2019, of March 28.

b) That in the territory in which the work is carried out a tax of an identical or analogous nature to that of Personal Income Tax applies and it is not a country or territory regulated as a tax haven .

This requirement is considered to be met when the country or territory in which the work is carried out has signed an agreement with Spain to avoid international double taxation that contains an information exchange clause. For the rest of the countries (with which there is no Agreement), it will be necessary to be aware of the existence of an identical or similar tax.

Quantification of the exempt amount

The exemption will have a maximum limit of 60,100 euros per year.

In order to calculate the remuneration corresponding to work performed abroad, the days that the worker has actually been posted abroad must be taken into account, as well as the specific remuneration corresponding to services provided abroad.

To calculate the amount of income earned each day for work performed abroad, apart from the specific remuneration corresponding to said work, a proportional distribution criterion will be applied taking into account the total number of days in the year.

Incompatibility with the excess regime

Finally, this exemption is incompatible, for taxpayers posted abroad, with the regime of excesses excluded from taxation for remuneration received by employees of companies and civil servants posted abroad provided for in article 9.A.3.b) of the Personal Income Tax Regulations, whatever their amount. The taxpayer may choose to apply the excess regime instead of this exemption.

Unlike the excess regime of article 9.A.3.b) of the Personal Income Tax Regulations, the amounts received for travel and accommodation to which the general regime of allowances exempt from taxation of article 9.A.3.a) of the Personal Income Tax Regulations applies are compatible with the exemption for work performed abroad.