Press Release: Capital duty: The European Commission formally requests Spain to abolish its transfer tax on certain contributions of capital

The European Commission has formally requested Spain to change its tax provisions related to the transfer of securities. The Commission considers that the imposition of a transfer tax on certain contributions of capital, in addition to capital duty, is contrary to the Capital Duty Directive (2008/7/EC). The request takes the form of a reasoned opinion (second step of the infringement procedure provided for in Article 258 of the Treaty on the Functioning of the European Union). If there is no satisfactory reaction to the reasoned opinion within two months, the Commission may decide to refer the matter to the Court of Justice of the European Communities.