If you are a tax resident in Spain and perform work abroad, you may benefit from an important tax exemption. Spain allows up to €60,100 per year of employment income earned abroad to be exempt from Spanish income tax, provided certain conditions are met.
This exemption can significantly reduce your tax liability, but the requirements are strict and often misunderstood.
Spain allows tax residents to exempt part of their employment income earned for work physically carried out outside Spain.
Maximum exemption: €60,100 per year
Applies only to employment income (not self-employment)
Applies only to work performed abroad
If your income exceeds €60,100, only the qualifying portion is exempt. The rest is taxed under normal Spanish income tax rules.
To apply the exemption, all of the following conditions must generally be met:
You must be a tax resident in Spain (typically more than 183 days per year or centre of economic interest).
The exemption applies only to days physically worked abroad. Work performed remotely from Spain does not qualify.
The work must be carried out for:
A non-Spanish company, or
A foreign permanent establishment of a Spanish company
Additionally, the work must generate a benefit for the foreign entity.
The country where the work is performed must have a tax system similar to Spain’s income tax.
This requirement is generally considered met if:
A double taxation treaty exists, or
The country is not classified as a tax haven
This exemption is often confused with remote work situations.
Working from Spain for a foreign employer does not qualify
The work must be physically performed outside Spain
If you work both inside and outside Spain, the exemption is applied proportionally based on the number of days worked abroad.
Example:
Total annual salary: €80,000
50% of workdays abroad
Eligible income: €40,000 → fully exempt (below €60,100 limit)
No tax credit is applied to the exempt portion
Foreign tax paid can only be credited on income exceeding the exemption
This means planning is important to avoid inefficiencies.
A Spanish tax resident works abroad for several months and earns €50,000 linked entirely to work performed outside Spain. The full amount may be exempt.
If only part of the work is performed abroad, only that portion qualifies.
If income exceeds €60,100, only the excess is taxed in Spain (with possible foreign tax credits).
The exemption is applied when filing your annual income tax return (Modelo 100).
You should:
Identify qualifying days worked abroad
Calculate the exempt portion
Retain documentation (travel records, contracts, employer details)
Proper documentation is essential in case of review by the tax authorities.
Assuming remote work from Spain qualifies
Not tracking days worked abroad
Applying the exemption without a qualifying foreign employer
Misapplying foreign tax credits
Taxadora supports individuals by:
Assessing eligibility for the €60,100 exemption
Calculating the correct exempt amount
Preparing and filing Modelo 100
Ensuring proper documentation and compliance
The €60,100 exemption is one of the most valuable tax benefits available to Spanish tax residents working internationally. However, it is also highly technical and frequently misapplied.
The key factor is simple but strict: the work must be physically performed outside Spain.
If you work internationally or travel for work, it is important to review your situation carefully to ensure you apply the exemption correctly.
Taxadora can help you optimise your position while staying fully compliant with Spanish tax rules.
Expert in international taxation for private individuals. He combines deep advisory experience with a passion for building technology that simplifies the complexities of Spanish tax compliance. As the founder of Taxadora, he’s on a mission to modernize cross-border taxation with smart, accessible solutions.
Contact us for assistance with a wide range of tax procedures, tailored to your needs
