I know quite a few who are doing the following in Spain:
Quote:
In accordance with article 7p of the
Spanish Personal Income Tax (PIT) Law. If certain conditions are met, Spanish tax residents are entitled to an exemption in their tax return for the employment carried out outside Spain of up to 60,100 euros per year.
Therefore, everyone who has worked abroad temporarily, keeping residency in Spain has right to the exemption of this article if the certain requirements are met, such as:
- The work must be developed physically abroad.
- The employment must be carried out for a company not resident in Spanish territory.
- In the country where the work is performed there must be an identical or similar tax to the Spanish PIT. This requirement shall be considered achieved whenever there is Double Tax Treaty signed between both countries, that includes a clause of information exchange. This cannot be effective if the country of destination is qualified as a tax haven.
- The exemption has a limit of 60,100 annual euros.