One of the trends brought about by digitalization is teleworking. Increasingly, people are working from home instead of at their employer’s office. This present a number of challenges from a tax perspective. Amongst others, a point of debate is whether a home office can constitute a permanent establishment (PE) if an employee works from there. This article sets out the traditional legal framework to determine the existence of a PE on the basis of the OECD Model Convention. The focus lies on material PEs. Subsequently, this framework is applied to home offices. The article finds that the OECD’s guidance on this point remains rather vague and that different countries have a different practice in recognizing home office PEs. Finally, the article makes several recommendations for possible clarifications on how the home office PE could be fit within the current legal framework of Articles 5 and 7 of the OECD Model Convention in light of the objectives of Article 7.