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V1846-15 12 June 2015 · SG de Fiscalidad Internacional Criterion in force
IRNR · base fija

Professionals' services income in Spain taxable if a fixed base exists in Spain

A professional resident in the U.S. provides consultancy in Spain using their clients' offices. The DGT examines whether these activities constitute a fixed base allowing Spain to tax the income.

The question raised

Question posed - Interpretation of Article 15 of the Convention with the USA.

The DGT's ruling

If a resident in the USA provides professional services in Spain using the offices or premises of their clients, a permanent establishment could exist. If such a permanent establishment exists, the income attributable to it may be subject to taxation in Spain. In this case, the individual would be taxed under the Non-Resident Income Tax (IRNR) following the rules for permanent establishment. The assessment of the existence of a permanent establishment must be carried out according to the criteria of the OECD Model Tax Convention.

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