Consideration of a leased property as a permanent establishment for VAT purposes

Abr 10, 2018

In its binding consultation V2915-17 of 13th November 2017, the Spanish Directorate general for Taxation (“DGT“) points out that simply because a non-tax resident enterprise holds properties for leasing or other purposes this does not necessarily mean that it disposes of a permanent establishment.   

If this non-resident company does not maintain permanent material or human resources, whether of its own or by outsourcing, for the performance of its leasing activities, it must be concluded that it does not have a permanent establishment in the territory of application of the tax.