The European Commission has issued a reasoned opinion against Spain for violating EU free movement of capital rules by denying non-resident taxpayers the same tax exemption on habitual residences that Spanish residents receive, giving Madrid two months to respond or face potential action at the EU Court of Justice.
The European Commission has issued a reasoned opinion urging Spain to end the discriminatory taxation of non-resident taxpayers who work and habitually reside in the country, as outlined in its April 2026 infringements package published on 28 April 2026,
Commission calls on Spain to put an end to discriminatory taxation of non-resident taxpayers working and habitually living in Spain
Today, the European Commission has decided to send a reasoned opinion to Spain (INFR(2025)4007) for violating the free movement of capital (Article 63 TFEU) when taxing non-resident taxpayers on their dwellings used as habitual residence. In general, Spain taxes deemed income from real estate owned by individuals at 2% of their cadastral value. However, properties used as dwellings constituting the habitual abode of resident taxpayers in Spain are exempt from taxation. This tax exemption does not cover non-resident taxpayers. Therefore, the Commission has decided to issue a reasoned opinion to Spain, which now has two months to respond and take the necessary measures. Otherwise, the Commission may decide to refer the case to the Court of Justice of the European Union.
