Most common provisions of the Agreements
Distribution of tax authority in the Agreements, in general, for different types of income
Agreements. Income from work of an employee residing abroad
Agreements generally establish that this remuneration can only be taxed in the country of residence.
In this sense the Non-resident Income Tax Act (Ley del Impuesto sobre la Renta de no Residentes, LIRNR) states that work performance is not considered to be income obtained in Spanish territory when they are not derived, either directly or indirectly, from personal activities carried out in Spanish territory. This consideration, different from exempt income, implies that it is income not subject to IRNR and therefore is not subject to withholding.