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V2612-22 23 December 2022 · SG de Fiscalidad Internacional Criterion in force
IRNR · establecimiento permanente

Whether a permanent establishment exists in Spain depends on whether logistics activity is essential to the business

An Irish company has requested a ruling on whether its import, logistics, and distribution activities in Spain, conducted via warehouses leased to a subsidiary, constitute a permanent establishment. The DGT indicates that if these activities are an essential part of the business model and are under the company's control, they could give rise to a permanent establishment.

The DGT's ruling

To determine whether a permanent establishment exists, it must be analyzed whether the activities in Spain are merely preparatory or if they constitute an essential and significant part of the business. If the integrated logistics activity (storage, customs clearance, picking, etc.) is part of the commercial cycle and is under the direction and risk of the parent company, a permanent establishment could exist. The definitive conclusion requires a factual analysis of the functions, assets, and personnel to verify whether a structure with economic and geographic coherence exists.

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