Spain dragged to court over 'discriminatory' rules for Brits

The European Commission decided to refer Spain to the Court of Justice of the European Union for having failed to remedy an infringement in relation to the free movement of capital.

Spain has been dragged to court over discriminatory tax treatment of non-resident taxpayers. The European Commission decided to refer Spain to the Court of Justice of the European Union for having failed to remedy an infringement in relation to the free movement of capital.

It comes due to a discriminatory tax treatment of non-resident taxpayers. The Commission said in a statement: “When a payment for transfer of assets is deferred for longer than a year or is paid in instalments over a period longer than a year, resident taxpayers may pay the tax either when the capital gain accrues or proportionally deferred on a cash flow basis.

"However, non-resident taxpayers are not offered this possibility of deferral and must pay the tax when the capital gains accrue at the time of the transfer of the assets.”

READ MORE 11 counties in England face 'eight inch' snow next week with 'entire' UK at risk

Non-resident taxpayers are people who live in the country for fewer than 183 days a year.

The Commission said Spain has maintained the legislation complies with EU law, but the body “considers that efforts by the national authorities have, to date, been insufficient”. The Commission sent Spain a letter of formal notice followed by a reasoned opinion on 23 May 2024.

The Commission considers that efforts by the national authorities have, to date, been insufficient and is therefore referring Spain to the Court of Justice of the European Union.

In reply to the legal wrangle, a Brit fumed: "I find this rather amusing considering the UK has been pulling this trick for years uk pensions are taxed in the UK when the recipient of that pension doesnt live in the UK plus house rent in the UK is tax even if the owner lives outside the UK."

"EU civil war," a second typed, alongside an eye roll emoji. A third said: "About time too."