Rent for work performed prior to moving to Spain

The DGT points out that the rent derived from work performed abroad prior to the move to Spain is not understood to have been obtained in this territory, so they are not subject to taxation by the IRNR and, consequently, they are not subject to withholding tax. this country.

A natural person residing in Ireland provided services exclusively in Ireland, and obtained from an Irish company, as part of his remuneration, a quantity of stock options in the years 2015, 2016 and 2017. On 31-12-2017, he accepted an offer to work in Spain in a Spanish company linked to the Irish company. The Spanish Administration has issued a certificate of having exercised the option for the special regime for workers posted to Spanish territory. Said option, except for resignation or exclusion, covers the tax periods 2018 to 2023. In 2018 the accrual of the stock options that were part of their remuneration in Ireland in 2015 takes place. A natural person residing in Ireland provided services exclusively in Ireland, and obtained from an Irish company, as part of his salary, a number of stock options in the years 2015, 2016 and 2017. On December 31, 2017, he accepted an offer to work in Spain in a Spanish company linked to the Irish company . The Spanish Administration has issued a certificate of having exercised the option for the special regime for workers posted to Spanish territory. Said option, except for resignation or exclusion, covers the tax periods 2018 to 2023. In 2018 the accrual of the stock options that formed part of its remuneration in Ireland in 2015 takes place.

First, and without going into more detail in this regard, the special Tax for Non-Residents tax regime applicable to workers posted to Spanish territory is regulated in art. 93 PIT and is developed in arts. 113 to 120 PIT.

In the case raised, by not providing more data on the stock options, it is assumed that the liquidation received in 2018 was a return corresponding, in its entirety, to the work that was carried out abroad prior to the date of posting. to Spanish territory, in which case, its taxation would proceed if said yield could be understood obtained in Spanish territory in accordance with the provisions of the
Law on Non-Resident Income Tax In the case raised, by not providing more data on the stock options, the hypothesis is that the liquidation received in 2018 was a return corresponding, in its entirety, to the work that he developed abroad prior to the date of travel to Spanish territory, in which case, his taxation would proceed if said yield could be understood as obtained in Spanish territory according to the provisions of the
Law on Non-Resident Income Tax.

In relation to work performance, they are considered to be perceived in Spain when they derive, directly or indirectly, from a personal activity developed in Spanish territory.

Following therefore the aforementioned hypothesis, it would not be subject to taxation in Spain, insofar as it did not derive, directly or indirectly, from a personal activity carried out by the natural person in Spanish territory. Finally, income not subject to taxation is not subject to withholding in this country.

Consultation DGT V88 / 2019 of January 15, 2019. EDD 2019/6396