6 de February, 2019

Continuing with the special fiscal measures contemplated in our regulations, we would like to discuss today about the exemption for work carried out abroad established by article 7.p) of the Personal Income Tax Law (PITL) also known as “expatriate regime”.

Work income earned for work performed abroad is exempt up to a limit of 60,100 euros per year, provided that the following requirements are met.

Special Tax Regime for expatriate employees.

  • That the worker is a tax resident in Spain and therefore taxed under the PITL.
  • That the works are actually performed abroad, and that said works are carried out for a company or entity not resident in Spain or a permanent establishment located abroad.
  • That in the territory in which the works are carried out, a tax of an identical or similar nature to the PIT is applied and that this country is not considered as a tax haven.

No specific procedure is foreseen to choose to apply this exemption.

However, the application of this exemption is incompatible with the regime of excesses excluded from taxation provided in the regulation of this tax. The taxpayer may opt for the application of the excess regime in substitution of this exemption. On the other hand, the regime is compatible with the deduction for international double taxation for the part that exceeds the maximum limit established for income abroad.

From Certus we recommend having the adequate advice to establish the possible application of this Special Regime, as well as for the calculation of the corresponding exemption.

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