EU Taking Spain to Court Over Taxes

🇪🇺 Why the European Union Is Taking Spain to Court Over Taxes – What You Need to Know

The European Commission has announced that it is taking Spain to the Court of Justice of the European Union (CJEU) for failing to comply with EU rules on taxation—again raising questions for foreign property owners, investors, and residents in Spain.

But what exactly is the issue this time? And how could it affect you?

⚖️ What Is the EU’s Complaint About?

The Commission argues that certain Spanish tax rules are discriminatory and incompatible with the fundamental freedoms of the EU, particularly those relating to capital gains tax and inheritance/gift tax applied to non-residents.

Although Spain has made changes over the years following several EU court rulings, concerns remain that non-residents are still being unfairly taxed in certain situations, such as:

The lack of automatic tax deferrals when reinvesting capital gains from the sale of a primary residence—something available to Spanish tax residents but not non-residents.
Administrative barriers and procedures that make it more difficult for EU residents outside Spain to access the same tax benefits as Spanish nationals.

The Commission believes these rules restrict the free movement of people and capital—two core pillars of the EU Single Market.

🔍 Why Does This Matter?

For foreign nationals—especially those owning property in Spain, investing from abroad, or planning cross-border inheritance—this case could set an important legal precedent.

If the CJEU rules in favor of the Commission, Spain may be forced to:

Revise its national tax laws to align with EU law.
Refund overpaid taxes in some cases.
Simplify and equalize tax treatment for EU citizens living outside of Spain.

💬 What Can You Do Now?

If you’re a non-resident who has been taxed in Spain—especially in relation to property sales, inheritance, or gifts—you may be entitled to a tax refund or recalculation.

We recommend the following:

Review past transactions involving property sales or inheritance in Spain.
Gather evidence of any differential tax treatment based on your country of residence.
Contact our legal team for a free assessment of your situation.