The European Commission has referred Spain to the Court of Justice of the European Union due to discriminatory tax treatment of non-resident taxpayers. As per Article 63 TFEU, the free movement of capital is breached. Residents can defer taxes on payments spread over more than a year, whereas non-residents must pay taxes immediately upon asset transfer. Despite previous discussions, Spain has not adjusted its legislation, prompting the Commission to escalate the matter to the Court.
In December 2021, Spain received a formal notice followed by a reasoned opinion in May 2024. However, Spain maintains its legislation aligns with EU rules. The Commission finds Spains efforts insufficient.
Background
Under Spanish tax law, residents can defer capital gains tax when payments for asset transfers are staggered, but non-residents must pay the full tax at the time of transfer. This creates an unfair tax burden and hinders capital movement within the EU.
More information is available in the EU infringement procedure and the infringement decisions database.