Spain taken to court over discrimination non-resident taxes

European Commission says discriminatory regulations impede free circulation of people and capital

SPAIN (Agencies) The European Commission is taking Spain to the EU Court of Justice in Luxembourg because it considers that there exist 'discriminatory regulations' regarding inheritance and capital gains taxes, and on donations to regional authorities, which obliges non-residents to pay more than residents. The taxes, says a communiqué from the Commission, 'constitutes an obstacle to the free circulation of people and capital, which are fundamental principles of the EU Common Market. Brussels had already asked Spain officially (May 5, 2010, and February 17, 2011) to take measures that would guarantee carrying out the European norms on the subject, 'but the Government has not modified legislation'. The main problem, says the press release, is that 'regional authorities offer residents a series of fiscal advantages that in practice allows them to pay less taxes than non-residents'.