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, they have, on a continuous or habitual basis, facilities or workplaces of any kind, in which they carry out all or part of their activity or act therein through an agent authorized to contract, in the name and on behalf of the taxpayer, who habitually exercises said powers.

The fundamental characteristic of a permanent establishment is the absence of legal personality distinct from that of its head office.

Permanent establishments shall be deemed to include management headquarters, branches, offices, factories, workshops, warehouses, shops or other establishments, mines, oil or gas wells, quarries, agricultural, forestry 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 business centres 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. It will not be possible to offset income between different permanent establishments.