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Expatriate Tax Optimization

In the case of workers displaced abroad, GD Global Mobility can help you to analyze the most interesting tax benefits, both for the company and for the expatriate worker. 

With the objective of promoting the internationalization of Spanish companies and making them more competitive, the Law on Personal Income Tax provides several tax incentives for workers who perform their duties outside of Spain.

Exemption for working abroad: Article 7p

This allows a worker who is tax resident in Spain to earn up to 60,100 euros exempt from tax with respect to work income. This is the well-known “7p” that allows the above-mentioned exemption as long as these requirements are met:

  • The work must be carried out for a company or entity that is not resident in Spain, which may be linked to the employee's employer, generating a benefit and/or utility, exclusively for the non-resident entity.
  • There is a tax similar to Personal Income Tax in the country where the services are provided.

global mobility Excess Regime

In other cases, it may be more appropriate for the worker to apply the excess regime that allows the excess they earn on top of the amounts they would have received if they had not moved abroad to be not subject to tax. This regime is incompatible with the 7p exemption. 

The best thing about this regime is that it has no quantitative limit when it comes to not taxing this excess received.

global mobility Special expatriate regime

This scheme includes a series of tax benefits as long as the worker can meet the necessary requirements and formalities. It is applied in those cases in which workers are entering Spanish territory.

If you are not sure how to obtain tax benefits during international mobility, contact us immediately and we will start a personalized program for you.

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Expatriate tax optimization to Spanish expatriates