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Practical manual for Income Tax 2021.

Officials and employees destined abroad

Regime of excesses

In the terms established in article 9.A.3.b) of the IRPF Regulation , the excess received over the total remuneration that the following persons with a destination abroad would receive in the event of being assigned to Spain is considered to be an exempt diet from tax, provided that they are taxpayers for the IRPF .

  • Spanish civil servants.

  • Personnel serving the State Administration.

  • Civil servants and staff in the service of other Public Administrations.

  • Employees of companies with foreign destinations.

Important: In these cases, the requirement that the recipient's travel and stay be for a continuous period of less than nine months is not required. Furthermore, the application of this regime of tax-exempt diets is incompatible with the exemption for income received from work performed abroad [art.7.p) Law IRPF ]. 

Calculation of the exempt amount

  • In the case of Spanish public officials posted abroad, the exempt amount will be the "excess" they receive over the total remuneration they would receive if they were posted in Spain, as a result of the application of the modules and the receipt of the compensation provided for in articles 4, 5 and 6 of Royal Decree 6/1995, of 13 January, which regulates the remuneration system for public officials posted abroad, and calculating said excess in the manner provided for in said Royal Decree, and the compensation provided for in article 25.1 and 2 of Royal Decree 462/2002, of 24 May, on compensation for reasons of service.

  • In the case of personnel serving the State Administration posted abroad, the exempt amount will be the "excess" they receive over the total remuneration they would receive from salaries, three-year periods, bonuses or incentives, if they were posted in Spain. For these purposes, the body responsible for remuneration will agree on the remuneration equalisations that may apply to said personnel if they were assigned to Spain.

  • In the case of employees of companies posted abroad, the exempt amount will be the "excess" they receive over the total remuneration they would receive from salaries, daily wages, seniority, extra payments, including benefits, family assistance or any other concept, by reason of position, employment, category or profession in the event that they are posted in Spain.

Incompatibility

Taxpayer may choose to apply this excess regime instead of exemption for income received from work actually performed abroad which is discussed in Chapter 2.