Skip to content
Back to index
V1888-20 10 June 2020 · SG de Fiscalidad Internacional Criterion in force
IRNR · representante fiscal

The obligation to appoint a representative in Spain depends on the existence of economic activity or income subject to taxation

A French civil society owning real estate in Spain has requested clarification on whether it is required to appoint a tax representative. The Directorate General for Taxes (DGT) has ruled that if there is no economic activity or income subject to taxation in Spain, there is no obligation to appoint a representative.

The question raised

1- Whether the Applicant is obliged to appoint a representative in Spain, given that she considers that she does not carry out any economic activity in Spanish territory.

The DGT's ruling

There is no obligation to appoint a representative in Spain if the company does not carry out economic activity and no income subject to this tax is obtained. However, if the managing partners use the real estate, the company could obtain imputed income in Spain for the use of said asset, which must be valued at market price as it constitutes a transaction between related parties.

Book your free first meeting