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Remote work for a foreign company: who withholds tax in Spain

Remote work for a foreign company: who withholds tax in Spain
Monedas y billetes de euro. Foto: Christoph Scholz / Wikimedia Commons, CC BY-SA 2.0 (recortada).

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In short: if you do remote work for a foreign company from Spain, there may be no tax withholding on your pay and you do the Renta yourself. The AEAT (the Tax Agency) summarises it in INFORMA consultation 149599 of September 2026: a person who is a tax resident in Spain and works remotely for a Portuguese company with no permanent establishment in Spain, and which carries out no economic activity here, has no IRPF withholding; even so, they pay tax in Spain on all their income. We could only read that official summary, not the full text of the consultation.

What the AEAT says. The case in the summary is remote work from Spain by a person with tax residence here, for a Portuguese company with no permanent establishment (in general, a fixed presence of the company in Spain, such as an office or a branch) and no economic activity in Spanish territory. The AEAT concludes in two sentences: the company has no duty to withhold IRPF, but the employee must pay tax in Spain on worldwide income, that is, on everything they earn, wherever it comes from. We do not know what else the consultation says or whether the view changes for companies from other countries.

What it means for you

  • If your case fits, your pay arrives without Spanish IRPF withholding. The tax is settled when you file the Renta.
  • When the payer is not obliged to withhold, your limit for not filing drops to €15,876 a year (art. 96.3.c of the IRPF law). If that salary is your only income and exceeds €15,876 a year, you have to file the Renta. All the limits: tax return for foreign residents.
  • You have to declare the salary even if it does not show in the draft. If you already paid tax on it in another country, there may be a deduction for international double taxation (art. 80 of the IRPF law) or a treaty may apply; this is a case for an adviser.
  • All this holds if you are a tax resident in Spain: tax residence and the 183 days.

What this summary does not cover. It does not talk about Social Security or residence permits. If your permit is the international teleworker one (digital nomad), its requirements are in international teleworker authorisation. If the foreign company does have a permanent establishment or carries out economic activity in Spain, the rule may be different: check your case.

What you can do

  • Check whether you are a tax resident in Spain that year.
  • Keep the contract, payslips or invoices and statements, with amounts and country.
  • Review the Renta draft and add that salary if it is missing: steps in the Renta guide.
  • Keep proof of any tax you paid abroad.
  • If in doubt about your company or your country, ask a tax adviser.

Official source: AEAT, news published in the INFORMA 2026, consultation 149599.

Informational only; check the official source and a professional for your specific case.

Frequently asked questions

Does a foreign company withhold tax in Spain if I work remotely from Spain?

According to the summary of AEAT consultation INFORMA 149599 (September 2026), not when the company has no permanent establishment in Spain and does no economic activity here: it has no duty to withhold IRPF. The case in the summary is a Portuguese company. We could not read the full text of the consultation.

So I do not pay tax in Spain on my foreign salary?

You do pay it: the AEAT says a tax resident in Spain pays tax on worldwide income, that is, on everything they earn, wherever it comes from. What is missing is the withholding on your pay, so the tax is settled when you file the Renta.

Which income limit applies in the Renta if my payer does not withhold in Spain?

If the payer is not obliged to withhold, the limit for not filing drops from €22,000 to €15,876 a year (art. 96.3.c of the IRPF law). If that salary is your only income and exceeds €15,876 a year, you have to file the Renta. See the guide to the return for foreign residents.

What is a permanent establishment?

In general, a fixed presence of the company in Spain, such as an office or a branch. The AEAT consultation starts from a company without one. If yours has one, or carries out economic activity in Spain, the rule may be different: check your case.

Official source: sede.agenciatributaria.gob.es

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Remote work for a foreign company: who withholds tax in Spain

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