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V0029-15 9 January 2015 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · establecimiento

A non-resident company's acquisition of commercial property may constitute an establishment in Spain

A non-resident company wishes to acquire property in Spain to rent it to third parties through a linked Spanish limited liability company. The DGT states that this economic activity constitutes an establishment for the non-resident entity.

The question raised

Concept of establishment for the purposes of the First Additional Provision of Law 38/1992.

The DGT's ruling

An establishment is considered to be the place from which an economic activity is carried out, in whole or in part. Since the described operation consists of carrying out an economic activity from a property in Spain, said property is considered an establishment. Therefore, the non-resident entity linked to the company owning the property is considered to hold an establishment located in Spain.

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