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Work carried out in Spain and paid by a foreign company

Work in Spain

How must a person pay taxes who comes to work to Spain and who continues to be paid by a company of their State of origin with which Spain has not signed a double taxation agreement?


If the worker is still a resident of their State of origin, they will pay Non-Residents' Income Tax (IRNR) in Spain, at the tax rate stated in the attached chart, according to the year of accrual, on the whole amounts received, with no entitlement to deduct any expenses.

However, in the case of earned incomes obtained from 1 January 2010, taxpayers resident in another European Union member state, or in Iceland and Norway in relation with earned incomes obtained from 1 January 2015, may deduct the expenses provided for in the Personal Income Tax Act for the determination of the gross tax base, provided that they certify that such expenses are directly related to the incomes obtained in Spain and have a direct and indissociable link with the activity performed in Spain.


Residents in the EU, Iceland and Norway = 19%


Other taxpayers  =  24% 


If, on the other hand, the worker is considered to be resident in Spain, they will be subject to Personal Income Tax, then having to pay taxes in Spain for all the incomes they obtain, regardless of their origin.


Josep Navarro's picture
Josep Navarro es Licenciado en Económicas por la UB, especializado en Inspecciones Tributarias, con más de 25 años de experiencia en asesoría fiscal para empresas y particulares en España.