Within our policy of advising workers and companies in the Region of Murcia, and as a result of the numerous queries we have received about tax treatment and Social Security coverage for employees who go to work temporarily abroad, we explain both questions, as well as the procedures that you must follow.
A) TAX REGIME OF INCOME OBTAINED FROM WORK ABROAD
In any case, we are talking about short trips (they do not exceed 183 days per year), of workers residing in Spain and belonging to Spanish companies, who travel abroad to carry out work whose final recipient is a foreign company and for whose work they receive A salary.
The Personal Income Tax Law (Law 35/2006 of November 28), in its article 7, p), exempts workers, resident in Spain, from taxing the income from work generated during trips abroad to provide the services that their companies entrust to them.
The requirements to be able to apply said exemption are the following:
1.-The exempt amount in personal income tax cannot exceed €60,101. It will be calculated by applying to the annual remuneration obtained, the percentage of days of effective stay abroad during the fiscal year.
2.-The income obtained must be classified as work performance, the worker being a taxpayer for personal income tax in Spain. A tax resident will be considered to be someone who has stayed more than 183 days a year in Spanish territory or who, failing that, maintains their center of economic or vital interests (family nucleus) in Spain.
3.-The worker must physically move outside of Spanish territory to provide his services, and the work must be carried out for a company or entity not resident in Spain, which will require demonstrating that this foreign company is the ultimate beneficiary of said work.
4.-It is necessary that the country where the services are provided has established an International Double Taxation Agreement with Spain, with an information exchange clause. At present, of the countries belonging to the European Union, only Cyprus remains to sign a Double Taxation Agreement with our country.
5.-The work cannot be carried out in countries classified as tax havens.
6.-Finally, the aforementioned exemption is incompatible with the regime of excess allowances excluded from taxation.
However, the Tax Administration may at any time verify the exemption applied. Thus, it is advisable to have the necessary supporting documentation that proves the trip, stay and work abroad, as well as having previously presented the 247 model at the Tax Agency and the TA300 model at the Social Security.
B) SOCIAL SECURITY PROTECTION OF DISPLACED WORKERS
It must be taken into account that employers must guarantee workers dtemporarily displaced outside Spain in the framework of a transnational provision of services the minimum labor conditions in force in the host country, whatever the legislation applicable to the employment contract.
If the provision of work is carried out in the European or Swiss Economic Area, the worker will be covered by the Spanish Social Security System; if the provision is carried out in another country, the existence of a bilateral, multilateral or with each specific country. For this, it is advisable to consult the agreements with the different countries, they can be consulted in the Social Security website
C) ADMINISTRATIVE PROCEDURES
Workers who are going to move to another country must first carry out two simple procedures:
At the Tax Agency:
– They must present the Communication of displacement abroad made by workers employed by others
This declaration will allow the exemption of salary income obtained for the income obtained from the work carried out abroad, with a maximum of 60,101.00 euros.
In Social Security
– Form TA300 must be submitted to obtain information on the applicable Social Security legislation in each country. It can be downloaded here
In addition, you must request the European Health Card if the displacement is in the European Economic Area. can be requested here
If you would like any other information, please contact contact with us.
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