Exemption for salary earned working abroad (trabajos realizados en el extranjero)

Key rules

• Cap: The exempt amount cannot go above EUR 60,100 a year in total.
• Physical presence: You must have been physically abroad; remote work from Spain generally does not count.
• Beckham regime: If you are under the Beckham special regime, you cannot use this exemption.
• Claiming: You claim it in your annual return, and it is optional.

Does a secondment qualify?

Possibly. If you are a Spanish tax resident and you physically worked abroad, part of your salary can be exempt from income tax. The exemption is capped at EUR 60,100 a year. It is optional, so you choose whether to use it.

What the work must look like

All of these must be true:

• You were physically present in the destination country. Working remotely from Spain for a foreign employer generally does not qualify, because the work is not performed abroad.
• The work benefited a company that is not resident in Spain, or a permanent establishment abroad. If the foreign company is in the same group as your employer, the benefit must go beyond a simple group link.
• The destination country is not a tax haven.
• The destination country applies a tax identical or similar to Spanish income tax. A country that has a tax treaty with Spain containing an information exchange clause is treated as meeting this condition.
• You are not under the Beckham special regime. Workers on that regime cannot use this exemption.

Whether the foreign company really benefits depends on the facts of each case. If your case is borderline, ask the tax authority (AEAT) before you rely on it.

How the exempt amount is worked out

Only the pay for the days you actually worked abroad counts. It is calculated by comparing your days worked abroad with the total days in the year. The EUR 60,100 cap applies to the total exempt pay for the year, not per trip or per country.

How to claim it

You claim the exemption in your annual income tax return. There is no special payroll procedure.

If you want your employer to take it into account when calculating withholding, give them a written statement of your trips. This is optional. If you skip it, you can still claim in your return.

Keep proof in case you are asked. The documents and checklist below show what to gather. In short, you need to be able to show that the work was done abroad, for whom, and when.

Check the current rules

The cap and the conditions have been the subject of proposed changes. Check the current text with the AEAT before you file.

Documents you need

• Assignment or secondment letter from your employer, showing you were sent to work abroad.

• Your employment contract.

• A list of your travel dates and the places where you worked abroad.

• Proof that your work benefited the foreign entity, which must be a non-resident company or a permanent establishment abroad.

• A written statement of your trips for your employer, only if you want them to take the exemption into account in your withholding.

Checklist

• Confirm you are not under the Beckham special regime.

• Confirm the work was physically done abroad, not remotely from Spain.

• Confirm the work benefited a non-resident entity or a permanent establishment abroad.

• Work out the pay for the days worked abroad compared with the total days in the year, and keep the exempt total within EUR 60,100 a year.

• Gather your secondment letter, contract and a list of travel dates and places.

• Give your employer a written statement of your trips if you want the exemption considered in your withholding.

Frequently asked questions

Can I claim the work-abroad exemption if I work remotely from Spain for a foreign employer?

No, remote work from Spain for a foreign employer generally does not qualify, because the work is not physically performed abroad. The exemption needs your physical presence in the destination country. If you travel abroad for the foreign entity, only the days you actually work there count.

Do I have to claim the work-abroad exemption, or does it apply automatically?

No, the exemption is optional and you claim it in your annual income tax return, not through a special payroll procedure.

Can I use the work-abroad exemption if I am on the Beckham special regime?

No, the exemption is not available to workers under the Beckham special regime, the special tax regime for some newly arrived workers. If you are under that regime, check your other options before planning around this exemption.

Does the country I worked in affect the work-abroad exemption?

Yes, the destination must not be a tax haven, and it must apply a tax similar to Spanish income tax. A country with a Spanish tax treaty that includes an information exchange clause is regarded as meeting that condition.