Press Release: State aid: Commission opens formal investigation into Spain’s tax scheme for the acquisition of shares in foreign companies

The European Commission has opened a formal investigation under EC Treaty state aid rules into a provision of the Spanish Corporate Tax Law that allows Spanish companies tax deductions deriving from acquiring a stake in non-Spanish companies. The scheme appears to establish an exception to the general Spanish tax system. The Commission is concerned that the scheme provides an advantage for Spanish companies acquiring foreign ones with respect to acquisitions of other Spanish companies. The opening of an investigation allows interested parties to comment on the measures under scrutiny. It does not prejudge the Commission’s final decision.