Martínez-Cardós Law Firm

Tax Advice for Diplomats and Staff of International Organisations

Taxation of Diplomats and Civil Servants Posted Abroad

Experts in the taxation of diplomats, consular officers and staff of international organisations in Spain

We advise diplomats, consular officers and staff of international organisations on their Spanish tax obligations while they are posted abroad: personal income tax (IRPF), Form 720, exemptions on salaries paid by international organisations and double tax treaties. We work in English and Spanish. We have over 50 years of experience providing comprehensive advisory services to Spanish civil servants posted abroad, and we also offer full real estate management services through our real estate consultancy Velora Realty.

Our areas of specialisation

Spanish civil servants posted to diplomatic missions and consular offices abroad.
Members of permanent delegations to NATO, the UN, the IMF, the World Bank and AECID.
National experts seconded to European institutions.

How are Spanish civil servants posted abroad taxed?

Spanish nationals posted to diplomatic missions, consular offices or permanent representations retain their status as taxpayers subject to Personal Income Tax (IRPF), with significant tax particularities that require specialised advice.

Characteristics of the applicable tax regime

Obligation to file tax returns in Spain on worldwide income, regardless of the country of posting.
Application of specific exemptions on remuneration received from international organisations.
Entitlement to deductions for international double taxation pursuant to bilateral treaties.

What our team handles

Tax returns (Personal Income Tax / IRPF, and Form 720) filed in Spain from abroad, with tax optimisation.
Interpretation of double taxation treaties with more than 90 countries.
Management of proceedings before Spanish Public Administrations.
Comprehensive advisory and real estate management services through our real estate consultancy Velora Realty.

How are staff of international organisations (NATO, UN, IMF, World Bank, AECID) taxed?

Civil servants and experts posted to international organisations face complex tax situations that combine international law, Spanish tax law and the specific regulations of each organisation.

Applicable tax regime

Officials of bodies headquartered in Spain: Taxed as Personal Income Tax (IRPF) taxpayers, with partial exemptions on remuneration received from the organisation.
Seconded national experts: Maintenance of the status of Spanish civil servant with special tax treatment.
NATO staff: Application of the NATO Status of Forces Agreement (SOFA) with specific exemptions.
Consultants to multilateral organisations: Taxation under Non-Resident Income Tax (IRNR) or Personal Income Tax (IRPF) depending on tax residence.

Comprehensive advisory services

Correct determination of the applicable tax regime according to organisation and position.
Optimisation of the taxation of mixed remuneration packages (organisation + Spanish State).
Management of destination supplements, expatriation bonuses and education allowances.
Informative returns (Form 720) on assets and rights held abroad.

International tax planning for diplomats

We develop personalised tax strategies to optimise the tax burden in strict compliance with applicable law, making full use of the particularities of the diplomatic tax regime.

Areas of planning

Optimal location of capital investments during postings abroad.
Structuring of income from movable and immovable capital.
Tax coordination in cases of spouses with different tax residences.
Estate and succession planning taking into account frequent changes of residence.

Additional services

Advisory services on the purchase and sale of real estate in Spain during postings abroad.
Management of rentals of the primary residence in Spain during the period of absence.
Processing of tax residency certificates for the application of tax treaties.
Representation before the Spanish Tax Agency (Agencia Tributaria) and appellate bodies.

Are you posted abroad or working for an international organisation? Our tax law team will review your situation and explain how to meet your obligations in Spain correctly.

FAQs: Tax Advice for Diplomats

Do Spanish civil servants posted abroad pay tax in Spain?

Yes. Spanish officials posted to diplomatic missions, consular offices or permanent representations remain Personal Income Tax (IRPF) taxpayers and must declare their worldwide income in Spain, with specific exemptions and deductions.

How are staff of international organisations taxed?

It depends on the organisation and the post: IRPF with partial exemptions for bodies based in Spain, special treatment for seconded national experts, the SOFA agreement for NATO staff, and IRNR or IRPF for consultants depending on their tax residence.