7P Model · Spanish income tax exemption
Spain’s 7p income tax exemption for work carried out abroad
If you live in Spain and your job takes you to other countries, up to €60,100 a year of your salary can be free of Spanish income tax. We help you check, calculate and apply it.
What it is
What is the article 7p exemption?
Article 7.p) of the Spanish Personal Income Tax Act (IRPF) allows workers who are tax resident in Spain not to pay tax on what they earn for work physically carried out abroad, up to €60,100 a year. We help you check whether you meet the requirements and apply the exemption correctly.
It is one of the most under-used tax benefits: many workers who travel internationally do not apply it because they do not know it exists or fear they cannot justify it. Properly documented, it is a completely legal exemption and can be claimed retroactively.
Who is it for?
- Consultants, engineers and technicians who travel to projects in other countries.
- Employees of companies with clients, subsidiaries or offices abroad.
- People who did not apply it in previous years and want to recover what they overpaid.
Requirements
Requirements of the 7p exemption
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01
Tax residence in Spain
The employee must be tax resident in Spain in the tax year in which the exemption is applied.
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02
Work carried out abroad
The work must be physically performed outside Spain, with actual travel to the destination country.
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03
For a non-resident entity
The work must be carried out for a company or entity that is not resident in Spain, or for a permanent establishment located abroad.
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04
Similar tax at destination
The destination country must have a tax similar to Spanish income tax and must not be a non-cooperative jurisdiction (tax haven). This is met if there is a double taxation treaty with an information exchange clause.
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05
Up to €60,100 a year
The exemption is calculated in proportion to the days worked abroad, up to a maximum of €60,100 a year.
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06
Supporting documentation
We prepare the file that evidences your travel (tickets, company certificates, calendar of days) in case the Spanish Tax Agency requests it.
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07
Previous tax years
If you did not apply it, you can request the correction of your tax returns for the last four years and recover the tax you overpaid.
Calculation
How the 7p exemption is calculated
The pay corresponding to the days worked abroad is exempt: any remuneration earned specifically for that work, plus the proportional part of your ordinary salary based on the days spent outside Spain over the days in the year.
| Simplified example | Amount |
|---|---|
| Gross annual salary | €42,000 |
| Days worked abroad | 73 days |
| Calculation: €42,000 × 73 / 365 | €8,400 |
| Amount exempt from income tax | €8,400 |
| Approximate saving at a 30 % marginal rate | ≈ €2,520 |
For illustration only. The actual calculation depends on how your pay is structured, your marginal tax rate and the days that can be evidenced. We calculate it for your specific case.
How we help
From first question to refund, step by step
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01
Review
We review your trips, your employer and the receiving entity to confirm that you meet the requirements.
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02
Calculation
We calculate the exempt amount for each tax year and the saving or refund you are entitled to.
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03
Documentation
We prepare the supporting file: certificates, calendar of days and evidence of your travel.
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04
Tax return or claim
We apply it in your income tax return or request the correction of previous years.
FAQ
Common questions about the 7p exemption
Can I apply the exemption if I work remotely from Spain for a foreign company?
No. The exemption requires the work to be physically carried out outside Spain. Days worked remotely from Spain do not count, even if the employer is a foreign company.
What if I work for a Spanish company?
It can still apply, as long as the work you carry out abroad is provided to an entity that is not resident in Spain or to a permanent establishment located abroad, for example a client or a subsidiary in another country that benefits from the work.
How much can be exempt?
Up to €60,100 a year. The exempt amount is calculated in proportion to the days worked abroad.
Can I claim it if I didn’t apply it in previous years?
Yes. You can request the correction of your tax returns for the years that are not time-barred, usually the last four, and the Spanish Tax Agency will refund what you overpaid, with interest.
What documentation do I need?
You will usually need tickets or boarding passes, a certificate from your company stating the days, the country and the entity you worked for, and the contracts or invoices with that entity. We prepare the full file in case the Tax Agency requests it.
Is it compatible with the excess allowance regime for expatriate workers?
No. The 7p exemption and the tax-exempt excess allowance regime are incompatible: you have to choose one. We analyse your case to apply whichever is more favourable.
Working abroad? Find out how much you could save
Tell us about your situation and we’ll let you know, with no obligation, whether you can apply the 7p exemption and how much you could recover from previous years.