Press Release: Direct taxation: Commission requests Spain to amend discriminatory tax rules applied to non-residents recruited to work in Spanish diplomatic or consular offices

The European Commission has sent Spain a formal request to amend its legislation according to which persons resident in a Member State other than Spain when recruited to work in a Spanish diplomatic or consular office cannot benefit from any personal or family allowances. The Commission considers that this tax provision as contrary to the free movement of persons guaranteed by the EC Treaty given that persons being Spanish residents before recruitment can benefit from these allowances. The request is in the form of a ‘reasoned opinion’, the second stage of the infringement proceedings provided for in Article 226 of the Treaty. If Spain does not respond satisfactorily to the reasoned opinion within two months, the Commission may refer the matters to the European Court of Justice.