Brussels files infringement proceedings to urge Spain to change tax rules for non-residents.
On Thursday, December 2, the European Commission launched infringement proceedings against Spain. The EU wants Spain to change its rules regarding the taxation of non-residents’ capital gains. Brussels believes that when the payments are made in instalments they are unfair.
According to the Commission, non-residents in Spain do not receive the same options for tax payments as residents do. They believe this is against EU rules on the freedom of capital, specifically mentioned in Article 63 of the founding Treaty of the EU.
Brussels began the proceedings by sending a formal letter of notice. The letter allows the EU to inform the Spanish authorities of the problems found. Spain has two months to respond to the letter and come up with possible solutions.
The procedure could then follow a further two stages if no resolution is reached. The next stage would be to arrange a new deadline for options to be discussed. After that, the issue could be brought before the EU Court of Justice.
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