Article 7P on the personal income tax exemption: everything you need to know

If you’re heading abroad for work—whether it’s a temporary assignment, training, or a relocation—there’s a key tax benefit you should know about. Under Article 7p of the Spanish Personal Income Tax Law, you could qualify for a full exemption on the income you earn while working outside Spain.

That means, if you meet the specific requirements, you won’t have to pay any tax on that salary in Spain. It’s a big opportunity to save money, so it’s worth understanding how it works before you pack your bags.

What is Article 7P

Article 7P is the one that regulates the exemption of income from work obtained abroad when the requirements explained below are met and up to an amount of 60,100 euros.

This implies that you will not have to include this income in your income tax return nor will it be subject to withholding.

Requirements

• Being a tax resident in Spain: This is the person who resides in Spanish territory for more than 183 days a year or has his center of economic interests in this country.
• Effectively moving to work abroad: In order to qualify for the exemption, there must be a real and effective movement to another country. It would not be valid, for example, if you work online from your home in Spain for a Swiss company.
• Providing services for a foreign entity or a permanent establishment located outside Spain: As long as this condition is met, the fact that the payer is Spanish or not does not affect the application of the exemption.

On the other hand, in the case of companies belonging to the same group, the services rendered must represent an added value for the company receiving them and this is deemed to be fulfilled when it has paid for them to third parties or has performed them itself.

Spain has established agreements to avoid double taxation with all countries belonging to the European Union. Also with almost all the countries of South America and many others.

When you work in a country with which Spain does not have an agreement, you must pay taxes. This is because each country has different ways of taxing.

Another important requirement: The destination country must have a tax similar to personal income tax and must not be considered a tax haven.

In this sense, it is understood that this requirement is met when there is a Double Taxation Treaty in force with Spain. By the way, on the AEAT website you can see which countries are considered tax havens.

This condition does not imply that the income obtained has to be taxed there, but simply that there is a tax levied on the overall income of the taxpayer in which a progressive tax rate is applied (which is one in which the percentage to be applied to calculate the tax goes up as the volume of income does).

How to apply article 7P

Once you’ve confirmed you’re eligible for the Article 7p exemption, the next step is calculating how much of your salary qualifies. To do this, divide your annual salary by 365 days, then multiply that figure by the number of actual working days spent abroad. This gives you the exempt portion of your income.

Keep in mind: only the calendar days worked abroad count (weekends and holidays included), but vacation days or personal stays before or after the assignment don’t. Additionally, any salary bonuses or supplements specifically linked to your time abroad are also exempt. If you’ve had multiple trips or employers, you can add them together—but the total exemption can’t exceed €60,100 per year.

What documents do you need?

To benefit from the Article 7p exemption, it’s crucial to gather solid documentation that proves you meet all legal requirements—because yes, the Tax Agency will check everything carefully.

Start with the company certificate, which must include:

• Total income received
• Destination country
• Dates of travel
• Name of the company receiving the service
• Description of the work done

Also, keep all records that support your travel and stay abroad, such as:

• Flight/train/boat tickets
• Rental agreements or hotel invoices
• Credit card transactions and daily expenses

💡 Any document that shows you were physically and professionally active in the other country strengthens your case. The exemption can mean big savings—so it’s only natural the tax office wants to prevent fraud.

What is the favorite superpower of a worker under article 7.p? Tax invisibility! But only up to 60,100 euros, of course.

Article 7p vs. Excess Regime: You Must Choose One

The Article 7p exemption is not compatible with the Excess Regime—you must choose one or the other.

The Excess Regime (Article 9A.3.b of the IRPF Regulations) allows you to exempt from taxation the extra amount you earn for working abroad, compared to what you’d earn in Spain for the same role.

✈️ In short: if you’re paid more because you’re on an international assignment, that extra amount can be tax-free.

This applies to both private sector employees and public administration staff. But remember:
✅ You must choose either Article 7p or the Excess Regime—they can’t be combined. Choose the one that gives you the greatest tax advantage.

Apply 7P with TaxDown

Let’s see, although we have explained it in detail we will not deny that the application of the IRPF exemption of art. 7P in the income tax return can have its «little things» … But that need not be a problem because that’s what TaxDown is for : to calculate it perfectly, so that you comply with the Treasury with the least possible headaches but getting the greatest tax savings allowed by the rules. We wait for you!