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V1964-20 16 June 2020 · SG de Fiscalidad Internacional Criterion in force
IS · residencia fiscal

A company established in Estonia may be deemed a Spanish tax resident if its effective management is based in Spain

A Spanish resident asks whether they can set up a company in Estonia as the sole shareholder and director. The DGT states that even if the company is established in Estonia, if its management and control are carried out from Spain, it could be considered a Spanish tax resident due to its effective management office being located in Spain.

The question raised

Question raised: Whether the described operation requires the incorporation of an entity in Spain.

The DGT's ruling

The residence of legal persons in Spain is determined by their incorporation, registered office, or place of effective management. If the management and control of the entity are located in Spanish territory, it would be understood that its place of effective management is located here. In the event of dual residence, an amicable procedure between the authorities of both States must be undertaken to resolve the matter.

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