Check whether a foreign company, founder, agent, remote team, office, project, or Spanish client activity may need permanent establishment review in Spain.
Updated 13 May 2026. This tool is a planning screen, not legal or tax advice. Use it to identify facts that should be reviewed before contracts, hiring, management moves, registrations, or Spanish operations continue.
Private client decision tool
Spain permanent establishment risk check for foreign companies
Screen when a foreign company, founder, employee, agent, office, project, or team in Spain may need permanent establishment review.
Best used before moving directors, signing Spanish clients, hiring in Spain, opening premises, or running projects from Spain.
Enter the required numbers in Step 1 before opening the calculator.
Enter the details on the left to generate a planning summary.
Updated 13 May 2026. Based on AEAT permanent establishment guidance for non-residents; this is a planning screen, not a tax opinion.
USD conversion uses ECB euro foreign exchange reference rates from 2026-05-25. 1 EUR = 1.1643 USD.
Sources and assumptions
- AEAT permanent establishment definition for non-residents: https://sede.agenciatributaria.gob.es/Sede/no-residentes/irnr-establecimiento-permanente/definicion-establecimiento-permanente.html
- Fixed place, habitual activity, authorised agent, management place, office, warehouse, shop, and construction or installation projects over 6 months can change the result.
What this tool checks
The screen focuses on the facts that usually change a foreign-company analysis: a fixed or habitual place in Spain, a Spain-based person with authority to negotiate or contract, strategic management from Spain, project duration, Spanish client revenue, workers or agents in Spain, and Spanish payroll, VAT, or tax registrations.
When to use it
Use it before a founder or director relocates, before a foreign company signs Spanish clients, before a team starts working from Spain, before using an office or home office regularly, or before a construction, installation, or assembly project expands beyond the initial plan.
What can change the answer
The result can change if the company has a Spain office, branch, warehouse, shop, workshop, project site, dependent agent, habitual contract authority, management decisions made from Spain, or a construction, installation, or assembly project lasting more than six months. Tax treaties and company documents still need separate review.
Frequently asked questions
Is this a final permanent establishment opinion?
No. It is a screening tool. Permanent establishment analysis depends on the exact facts, the non resident company, any tax treaty, people in Spain, contract authority, premises, project duration, and invoicing.
What facts can create permanent establishment risk in Spain?
Important facts include a fixed or habitual place of business, a Spain-based agent authorised to contract for the non resident, management activity in Spain, offices, branches, warehouses, shops, workshops, and long construction or installation projects.
Does a founder or director working remotely from Spain matter?
Yes. Remote management from Spain can affect permanent establishment, corporate tax residence, payroll, Social Security, VAT, and contract allocation even if the company is incorporated abroad.
Do Spanish clients alone create a permanent establishment?
Not automatically. Spanish client revenue becomes more important when combined with Spain-based staff, contract authority, a fixed place, habitual commercial activity, or management decisions made from Spain.
When should the structure be reviewed?
Review before signing Spanish contracts, hiring or relocating staff, using an office or home office regularly, running a project in Spain, registering for VAT or payroll, or moving directors to Spain.
Tool changelog and legal update log
- 13 May 2026: Added source checked FAQ exception notes, a visible legal update log, custom review notes, and consultation brief handoff for the public tools.
- 13 May 2026: Added permanent establishment screening around fixed place, dependent agent, Spain management, Spanish clients, team size, registration status, and project duration.