11.9.1.1 Definition of permanent establishment

A natural or legal person is considered to operate through a permanent establishment in Spanish territory when for any reason it has, on a continuous or habitual basis, facilities or workplaces of any kind, in which it carries out all or part of its activity or acts in him through an agent authorized to contract, in the name and on behalf of the taxpayer, who regularly exercises said powers.

The fundamental characteristic of the permanent establishment is the absence of legal personality other than that of its head office.

It will be understood that management headquarters, branches, offices, factories, workshops, warehouses, stores or other establishments, mines, oil or gas wells, quarries, agricultural or forestry operations constitute a permanent establishment. or livestock farms or any other place of exploration or extraction of natural resources and construction, installation or assembly works whose duration exceeds six months.

If a taxpayer has several centers of activity in Spanish territory, they will be considered different permanent establishments and will be taxed separately if they carry out clearly distinguishable activities and their management is carried out separately. The compensation of income between different permanent establishments will not be possible.