Spanish Territory: Domicile, Business, and Tax Implications

Posted on Mar 5, 2025 in Law

Who is Not Established on Spanish Territory?

It appears that it requires the concurrence of three negatives: He who has neither his domicile, nor his place of business, nor a fixed establishment on Spanish territory.

Fiscal Address

Tax residence of the entity that is where its central administration is, and in its absence, where the higher value of the assets is located (Article 48 of the Tax Code). Usually, the tax residence may agree or coincide with the registered office.

Permanent Establishment

Its conceptualization in Article 69.2 gives a general idea and particular cases. The general notion is a fixed place of business where the entrepreneur carries out an economic activity.

The particular cases we can sort them into three groups:

  1. An organized unit or workplace such as a factory, shop, workshop, place of management, a shopping center, or a branch.
  2. Agencies or representatives authorized to contract on behalf of the taxpayer.
  3. A work of installation or assembly project which exists for more than 12 months.

Goods Delivered and Services

Delivery of Goods

Refers to tangible property such as industrial products and natural resources. Not only consumer goods but also investment goods as a machine for a factory. Intangible assets are outside such as patents and trademarks.

The concept is centered on the delivery of goods of trade or commerce and includes national and international trade.

Are not considered supplies of goods for VAT purposes:

  1. The lease of property
  2. The local transfers
  3. The assignment of the use of property
  4. The granting and transfer of intangibles
  5. The holding of fairs
  6. The use of sports facilities

They have their own rules in part intra-Community supplies and parts have their own rules on export of goods. From the point of view of their role in tax, it is helpful to distinguish between OUTPUT DELIVERY in which the employer is repercutidor and ENTRY DELIVERY where the employer is affected (receives an impact).

Provision of Services

The assumptions included in this concept can be grouped into three:

First, the traditionally called Tertiary which are included:

  • Exercise independent profession, trade or occupation
  • Mediation, agency or commission
  • Transport services, hotel and restaurant
  • All financial transactions such as loans or credits and any insurance operations

Secondly, we can make a group of services related to goods within it:

  • The lease of goods
  • The transfer of business premises
  • The transfer of the use of property, the granting and transfer of intangibles, the use of facilities Sports and fair-exploitation of computer products Supply previous order

Third, those services that the concept of service plays a role in what we can say is called “closure” which gives access to all operations subject that can not be classified as supply of goods or intra-Community acquisition or importation of property. In view of the role within the tax is useful to distinguish between services provided to another and the services received from other.