The European Commission Formally Requests Spain to Amend Certain Rules Related to the Appointment of Fiscal Representatives

15 March 2010

The European Commission has formally requested Spain to change its tax provisions related to the appointment of fiscal representatives. The Commission considers that the rules which require certain non-resident natural and legal persons to appoint a fiscal representative in Spain result in discriminatory treatment. 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 EU (TFEU)). 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 Union.

Under Spanish law, the following are amongst those obliged to appoint a resident tax representative in Spain: foreign pension funds located in Member States other than Spain and providing for occupational pension schemes in Spain; EU insurance companies operating in Spain under the freedom to provide services; non-resident companies operating in Spain through a permanent establishment; and non-resident natural persons subject to inheritance and gift tax in Spain.

The Commission considers that this requirement is not proportionate and that it restricts the free provision of services. The Commission’s case reference number is 2007/2446.

For further information, please contact José Blasi:  [email protected]