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V2037-18 9 July 2018 · SG de Fiscalidad Internacional Criterion in force
IRNR · establecimiento permanente

French SCPIs and SCIs do not have a permanent establishment in Spain

A French asset manager enquires whether its real estate investment vehicles (SCPIs and SCIs) have a permanent establishment in Spain. The DGT determines that no permanent establishment exists because the entities lack material and personnel resources and do not employ a full-time employee in Spain.

The question raised

Whether the operation determines that an SCPI or SCI has a permanent establishment in Spain.

The DGT's ruling

No permanent establishment exists if the entities do not have material or human resources in Spain and management is carried out from France. For the lease to be considered an economic activity in Spain, it is required to employ at least one person under a full-time employment contract. Income from the leasing and transfer of real estate is taxed in Spain pursuant to the Convention and the TRLIRNR. The transfer of shares in an SCI may be taxed in Spain if its assets consist primarily of real estate located in Spanish territory.

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