The Commission urges Spain to amend its tax provisions for certain real estate sales. In Spain capital gains from the sale of a permanent residence are exempt for tax if the gains are used to acquire another permanent residence.

However, this provision only benefits Spaniards, therefore discriminating against non-Spaniards. This situation is incompatible with fundamental freedoms granted in the Treaties. The request takes the form of a reasoned opinión, which is a second step of EU infringement proceedings. If Spain does not comply with the request within two months, the Commission may decide to refer the case to the EU’s Court of Justice.

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