The Court of Justice of the European Union (CJEU) pinned Spain on Thursday for its obligation for expatriates to declare their property held abroad, judging this device “
disproportionate
” and contrary to the principle “
of free movement of capital
".
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Since 2013, tax residents in Spain have been required to declare to the Spanish tax authorities all of their assets abroad (real estate, accounts, etc.) whose value exceeds 50,000 euros, as part of a measure intended to better fight against tax evasion.
The goods concerned, often taxed in the countries concerned, are not taxed a second time in Spain.
But the absence of a declaration to the Spanish tax authorities is liable to heavy penalties, which can reach several thousand euros.
In its judgment, delivered Thursday after a long showdown between the tax authorities and taxpayers, the CJEU considered that the Spanish legislation went "
beyond what is necessary to achieve
" its objectives, namely the effectiveness of tax audits.
"
The sanctions
" provided for in the event of "
misunderstanding or imperfect compliance
" with the legislation also create "
a difference in treatment
" between Spaniards and expatriates and undermine "
the freedom of movement of capital
", she judged. .
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This judgment, in accordance with an opinion issued in 2017 by the European Commission, is final and Spain will therefore have to adapt its legislation, according to a spokesperson for the CJEU.