The European Commission is taking Spain to the European Court of Justice over discriminatory tax treatment of asset transfers involving nonresident taxpayers.
Spain failed to rectify differences in the timing of capital gains tax payments by residents and nonresidents, violating the EU’s principle of free movement of capital, the commission said Wednesday.
Spanish tax residents may delay or stagger payment of capital gains tax when payment for an asset transfer is deferred by more than a year or is paid in installments over more than a year.
Nonresidents, in contrast, must pay tax in full when the capital gains accrue …