Towards the consolidation of legal certainty in Spain
The standardization of the application of European law in the Spanish legal system is fundamental for consolidating legal certainty in Spain and providing an incentive for foreign investment.
In this regard, joining the efforts of lawmakers to bring Spanish tax law into line with the requirements of EU law are the latest judgments handed down by the Madrid High Court which seek to place foreign or local entities in objectively comparable circumstances on the same footing in terms of their tax treatment. The judgments also seek to prevent discriminatory situations restricting the free movement of capital and tending to discourage investment by funds and institutions like insurers, not-for-profit entities, etc., due to a heavier tax burden than that for their Spanish counterparts.
Eduardo Abad, the partner in charge of the Tax Department has commented on these recent judgments, which, little by little, are paving the way for the liberalization of the capital markets, in an article published in the Spanish financial daily Expansión which you can read in full by clicking on this link (in Spanish).
Garrigues Tax Department