Press Release: Direct taxation: The European Commission requests Spain to change restrictive exit tax provisions for individuals

The European Commission formally requested Spain to change its tax provisions which impose an exit tax on individuals who cease to be tax resident in Spain. The provisions are incompatible with the free movement of persons provided for in Articles 18, 39, 43 of the Treaty and Articles 28 and 31 of the EEA Agreement. The request took the form of a reasoned opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). 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.