Permanent establishment and rented buildings

In general, a non-resident person who has leased real estate in Spanish territory is not considered to operate through a permanent establishment in Spain since, according to Spanish tax legislation, the mere leasing of real estate is not one of the cases considered to be a permanent establishment.

However, in the event that real estate is rented and at least one full-time employee is employed in Spain for the management of the activity, the activity carried out may be considered to be of a business nature through a permanent establishment.