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    Home > Headlines > EU sues Spain for discriminatory tax treatment of non-residents
    Headlines

    EU sues Spain for discriminatory tax treatment of non-residents

    Published by Global Banking & Finance Review®

    Posted on March 12, 2025

    1 min read

    Last updated: January 24, 2026

    EU sues Spain for discriminatory tax treatment of non-residents - Headlines news and analysis from Global Banking & Finance Review
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    Tags:corporate taxfinancial crisisEuropean Commissiontax administrationinternational financial institution

    Quick Summary

    The EU is suing Spain for discriminatory tax practices against non-residents, affecting the free movement of capital.

    European Commission Takes Legal Action Against Spain Over Tax Discrimination

    (Reuters) - The European Commission said on Wednesday it had referred Spain to the European Court of Justice for discriminatory tax treatment of non-residents.

    The Commission said Spain had infringed the free movement of capital by allowing residents a choice when to pay taxes over a transfer of assets with a deferred payment, while non-residents always have to pay the tax at the time of the transfer of the assets.

    (Reporting by Bart Meijer, Editing by Timothy Heritage)

    Key Takeaways

    • •The EU has referred Spain to the European Court of Justice.
    • •Spain's tax policy discriminates against non-residents.
    • •Residents can defer tax payments; non-residents cannot.
    • •The issue affects the free movement of capital.
    • •The European Commission is leading the legal action.

    Frequently Asked Questions about EU sues Spain for discriminatory tax treatment of non-residents

    1What legal action has the European Commission taken against Spain?

    The European Commission has referred Spain to the European Court of Justice for discriminatory tax treatment of non-residents.

    2How does Spain's tax treatment differ for residents and non-residents?

    Spain allows residents to choose when to pay taxes on asset transfers with deferred payments, while non-residents do not have this option.

    3What principle is Spain accused of infringing?

    Spain is accused of infringing the free movement of capital by its discriminatory tax practices.

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