Definition of Permanent Establishment

For the purposes of Non-Resident Income Tax (IRNR), when is it understood that a non-resident operates in Spain with a permanent establishment?

a person operates through permanent establishment in Spanish territory when he or she holds in any way installations or work premises of any kind, in which he or she carries out all or part of his or her activity, or acts in it through an agent authorised to hire, in the name and on account of the non-resident, using these powers regularly.

More specifically, the premises that constitute a permanent establishment are:executive headquarters, branch offices, offices, factories, workshops, warehouses, shops or other establishments, mines, petroleum or gas wells, quarries, farm, forest, livestock or other holdings or any other place used for the survey or extraction of natural resources, as well as construction, installation or assembly work with a duration of more than 6 months.