EU expat resident homeowners in Spain don’t get the same tax breaks as Spaniards when they change home, which is against EU laws.
Spanish residents who sell their principal home and reinvest the proceeds in another one pay no capital gains tax, but expat residents homeowners from the EU who do exactly the same don’t get the same tax break – a clear case of fiscal discrimination in contravention of EU laws.
Spain has been warned about fiscal discrimination before, but now Brussels has lost its patience and given Spain an ultimatum of two months to rectify the law or be taken to the European Court of Justice.
The EU says the current situation is “incompatible with the fundamental rights established by EU treaties.”
The Spanish Government has until December to change the law.