The Income Tax Law (IRPF) provides for an important tax exemption for residents who work abroad. This tax concession, regulated in Article 7.p) of the LIRPF, makes it possible to exempt income from work carried out outside Spain up to 60,100 euros per year, provided that certain conditions are met.

To be eligible for this tax exemption, the work must actually be carried out abroad and the country in which the work is carried out must have a tax rate similar to the Spanish income tax rate. In addition, the employer must be a non-resident entity in Spain or an international organisation to which Spain belongs.

An important aspect to consider is the need to properly justify both the tax residence in Spain and the time and place of work abroad. This requires accurate and detailed documentation such as employment contracts, tax residence certificates and any other documents that prove the stay and work abroad.

It is important to mention that this exemption is not automatic; the taxpayer must apply for it in their tax return and provide all the necessary documentation. In addition, the work carried out abroad must not exceed 183 days in a calendar year in order to maintain tax residence in Spain. This regulation is also compatible with the international double tax deduction for the part of the income that is not tax-free.

For foreigners resident in Spain, this exemption represents a considerable advantage. Many freelancers and entrepreneurs who temporarily move to another country can benefit from this measure, reducing their tax burden and optimising their financial situation.

However, the rules are complex and their application can vary from case to case. Therefore, expert advice is crucial to ensure proper compliance with all requirements and to maximise the tax benefit. It is recommended to consult a professional to assist taxpayers in preparing the necessary documentation and correctly applying the exemption in the tax return.

It should also be noted that not all countries are eligible for this exemption under Spanish regulations. In other words, the work must be carried out in countries with which Spain has signed an agreement to avoid double taxation or in countries that levy a tax similar to income tax. This once again emphasises the importance of expert advice, as the interpretation of these agreements can be complex and vary from case to case.

To summarise, the tax exemption for work carried out abroad is a valuable opportunity for Spanish residents working temporarily outside Spain. Taking advantage of this benefit requires precise knowledge of the regulations and careful preparation of the documentation, which emphasises the importance of professional advice to ensure correct application and avoid possible penalties from the tax authorities.