Spain - Possible Capital Gains Tax Refund

17-05-2010

Published:

Back in 2006 the European Commission took the Spanish Government to the European Court of Justice due to Spain’s capital gains tax regime and the fact that this discriminated between residents and non-residents.

Residents capital gains tax stood at 18% whilst non-residents were being charged at a rate of 35% which was believed to be a breach of EU principles by the European Commission.

In October 2009 the European Court of Justice gave its ruling in favour of the European Commission confirming that this was a breach of EU principles under article 56 of the EC Treaty and article 40 of the EEA Agreement.

The European Court of Justice went further and this year stated that any capital gains tax collected between January 1997 and 31 December 2006 should be refunded where the charge has been met by an EU citizen.

It is therefore possible to request a refund of the difference in capital gains paid where this has been paid by an EU citizen between the 1st January 1997 and 31st December 2006.

We would strongly recommend that you contact your tax adviser for further information. Should you require contact details of a suitable adviser please do not hesitate to contact Joey Imossi at joey.imossi@fiduciarygroup.com or on telephone number +350 2007 6651.