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3.1. Corporate Tax Residence

For corporate tax purposes, companies and other taxable entities are regarded as tax residents if either: they have been incorporated according to Spanish Law, they have their legal seat in Spain or they have their place of effective management in Spain (article 8 of the Corporate Income Tax Law). Effective management means  the activities are managed and controlled from Spain.

The foremost consequence stemming from the qualification of an entity as a tax resident under Spanish law is that such entity is liable to tax in Spain on its worldwide income.