Exemption for income received from work done abroad
Income from work actually performed abroad is exempt from tax, subject to the following requirements:
That such work be carried out for a company or entity not resident in Spain or a permanent establishment located abroad.
In particular, when the entity to which the work is addressed is related to the employee's employer or to the entity to which it provides its services, the work shall be deemed to have been carried out for the non-resident entity when, in accordance with the provisions of the Corporation Tax Law, an intra-group service may be considered to have been provided to the non-resident entity because the service produces or may produce an advantage or profit for the receiving entity.
The territory in which the work is carried out must be subject to a tax of an identical or similar nature to that of this tax and must not be a country or territory that has been classified as a tax haven by regulation. This requirement will be considered fulfilled when the country or territory in which the work is carried out has signed an agreement with Spain to avoid international double taxation containing an information exchange clause.
The exemption will have a maximum limit of 60,100 euros per year. In calculating the remuneration for work performed abroad, account must be taken of the days on which the worker has actually been posted abroad and of the specific remuneration for services provided abroad.
For the calculation of the amount of daily income accruing from work carried out abroad, apart from the specific remuneration for such work, a proportional distribution criterion shall be applied, taking into account the total number of days in the year.
This exemption will be incompatible, for taxpayers posted abroad, with the system of excesses excluded from taxation, in the form of allowances for living and subsistence expenses (art. 9º A.3.b) Rgl.), whatever the amount. The taxpayer may choose to apply the excess scheme in place of this exemption.