Definition of permanent establishment
Concept of permanent establishment in Non-Resident Income Tax
It is understood that a natural or legal person that carries out economic activities operates through a permanent establishment in Spanish territory, when for any reason it has facilities or places of business there, on a continuous or habitual basis. work of any kind, in which he carries out all or part of his activity, or acts in it through an agent authorized to contract, in the name and on behalf of the non-resident, who regularly 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.