Definition of permanent establishment

It is understood that a natural person or legal entity that carries out economic activities operates through a permanent establishment in Spanish territory, when by any title it has in the same, continuously or habitually, facilities or workplaces of any kind, in which it carries out all or part of its activity, or acts in it through an agent authorized to contract, in the name and on behalf of the non-resident, who habitually exercises said powers.

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.

The permanent establishment has no legal personality of its own. Permanent establishments of non-resident entities do not have a legal personality distinct from that of their head office.