Worried Your Presence in Spain Might Trigger Unexpected Tax Exposure Abroad?
- Business Expats
- Jul 30
- 1 min read
Expats running international operations often face a hidden tax risk: Permanent Establishment (PE). Without realizing it, simply managing part of your business from Spain — even temporarily — can create legal ties that result in unexpected tax liabilities in other countries.
For example, you might be:
A founder overseeing a Latin American company while living in Madrid.
A digital nomad working remotely for a U.S. company.
Running a European holding structure from your Spanish residence.
But if local tax authorities determine that your Spanish activity constitutes a “fixed place of business” or represents a dependent agent, they may claim that your foreign company has a taxable presence in Spain (or vice versa).
This creates stress, uncertainty, and financial risk for founders and investors who simply want to operate legally and efficiently across borders.
How Business Expats Helps
At Business Expats, we specialize in evaluating your cross-border business structure to minimize PE exposure and ensure tax compliance both in Spain and abroad. Here's how:
We review your company’s global operations and contracts to assess PE risk in Spain.
We advise on strategic setups that maintain substance and separation between jurisdictions.
We coordinate with your international tax advisors to ensure local and foreign filings align.
We create reporting protocols to avoid red flags that may alert Spanish tax authorities.
Take action to avoid unnecessary tax penalties.
Book a free consultation with our international tax team and get tailored advice for your business structure.
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