Permanent establishment and Agreements avoiding double taxation

If a non-resident taxpayer carries out economic activities in Spanish territory and is entitled to invoke the application of a Double Taxation Avoidance Agreement signed between Spain and their country of residence, it would be necessary to refer to the specific article of the Agreement defining the permanent establishment to determine whether they operate through this figure.

In general, the Agreements signed by Spain are based on the Agreement model of the Organisation for Economic Co-operation and Development (OECD), which includes a somewhat narrower definition of permanent establishment than that of domestic legislation. However, the specific Agreement should always be consulted.