Ultimatum to Spain for discriminatory tax rules for non-residents or contrary to EU Directives
Discrimination against non-residents in gains from the installment sale of real estate and other similar gains.
The European Commission has given Spain an ultimatum for its tax rules that discriminate against non-residents when they sell their property in Spain. While residents can choose between paying the tax when the capital gains are obtained or deferring it and paying it proportionally depending on what the amount actually received is (split payment cases), non-residents do not have that option. They have to pay the tax when the assets are transferred, regardless of when they receive it. The Commission considers this system to be discriminatory and contrary to EU rules. Spain has two months to respond and take action; otherwise, the matter could go to the Court of Justice of the European Union.
Minimum corporate income tax rate of 15%.
The Court of Justice of the European Union (CJEU) has given Spain a warning for failing to comply with the transposition of the Pillar 2 Directive, which seeks to ensure that large multinational companies pay at least 15% effective tax. Most countries have already taken action, but Spain has lagged behind. It has not yet notified how it intends to implement this Directive in its territory. Although measures have already been taken by the Government, the European Commission has given it a two-month ultimatum to catch up. If it fails to do so, the CJEU could take action.
Tax regulations in the event of spin-off
The European Commission has drawn Spain’s attention to the fact that it is hindering companies with regard to spin-offs. It turns out that Spanish legislation has restrictive conditions for all company spin-offs (the spin-off must be considered a branch of activity in order to apply the special regime). This creates inequalities and goes against the aims of the Directive. So Spain has to adapt to the rules stipulated at EU level.
