Specific issues relating to taxation of other income, no agreement

Person who comes to work in Spain and is paid by the company in the country of origin

A person who comes to work in Spain and continues to receive a salary from the company in the State from which he or she comes, with which Spain has not signed a Double Taxation Agreement, if the worker continues to be a resident of the State from which he or she comes, will pay taxes in Spain as a taxpayer of the Non-Resident Income Tax (IRNR), with the tax rate in the attached table being applicable, depending on the year of accrual, on the full amounts received, without deducting any expenses.

However, in the case of income obtained from 1 January 2010, for the determination of the tax base, taxpayers resident in another Member State of the EU, or in the European Economic Area (EEA) with effective exchange of tax information (with effect from 11 July 2021, regulatory references to effective exchange of tax information are understood to be made to the existence of regulations on mutual assistance in the area of ​​exchange of tax information), in relation to income obtained from 1 January 2015, may deduct the expenses provided for in the Law on PIT, provided they prove that they are directly related to the income obtained in Spain and that they have a direct and inseparable economic link with the activity carried out in Spain.

If, on the other hand, the worker is considered to be resident in Spain, they will be subject to Personal Income Tax, then having to pay taxes in Spain for all the incomes they obtain, regardless of their origin.