A new twist to the Spanish Matriculation tax

[Hurricane]

Stewart, it would be totally contrary to the Treaty of Rome for Spain to apply a lighter tax to a Spanish resident and a heavier tax to non Spanish EU residents with identical circumstances. So the Spanish couldn't do what your lawyer first suggested. They'd have a letter from the EU Commission within a month and if they still dug their heels in an EU court ruling against them within 9 months, for sure
.

I picked up this thread last night so I've been watching with interest this morning.

jfm
I take your point about the Spanish working outside EU law but IMO they wont care about that - it seems to me that they act now and any case would drag on for so long that everyone will have forgotten about it when it finally comes to the EU's attention.

A question for the experts
If a boat is privately (jointly) owned, do you think that each owner will get a 700,000 allowance?

 

[jfm]

I picked up this thread last night so I've been watching with interest this morning.

jfm
I take your point about the Spanish working outside EU law but IMO they wont care about that - it seems to me that they act now and any case would drag on for so long that everyone will have forgotten about it when it finally comes to the EU's attention.

A question for the experts
If a boat is privately (jointly) owned, do you think that each owner will get a 700,000 allowance?

No Mike. On a naked breach of one of the 4 freedoms in the Treaty of Rome, which this would be, the Spaniards wouldn't have a chance. The EU Commission would send them a "fix it now" letter very quickly and then fast track list it at court. Absolutely no "dragging on". The Spaniards wouldn't have a hope in hell and they would lose and pay compensation. It's totally dfifferent from their crazy mat tax and their crazy bulldzoing of holiday homes, which have nothing to do with the EU commission. you canot lump all these issues into the same category. Indeed, they know this and they have expressly allowed the 700k cut off to non residents (so this debate between us is entirely academic)

On your Q2, you need detailed advice but I would expect a married couple would have 1400k between them ie 700k each. Generally, and for a very long time, married couples are treated as separate and distinct taxpayers in spain

 

[MapisM]

Generally, and for a very long time, married couples are treated as separate and distinct taxpayers in spain

Just genuinely curious, you're saying that as if it wouldn't be the case in the UK...

 

[jfm]

Just genuinely curious, you're saying that as if it wouldn't be the case in the UK...

No, you're right, H+W are taxed independently in UK (though there are still a few circumstnaces in the UK where in effect joint taxation still applies)

I was only answering Hurricane's direct question and wasn't trying to say it "as if" anything

 

[MapisM]

Aha. As I said, 'twas a genuine question, 'cause I would have been surprised to hear otherwise, but in these things there's always something to learn...

 

[lovezoo]

No Mike. On a naked breach of one of the 4 freedoms in the Treaty of Rome, which this would be, the Spaniards wouldn't have a chance. The EU Commission would send them a "fix it now" letter very quickly and then fast track list it at court.

Spain did the same thing with CGT on houses - different exemptions for residents/non-residents. They eventually had to refund the non-resident EU citizens, but it took years.

 

[Deleted User YDKXO]

The tax is coming back for the 2011 and 2012 tax years only.

Thats the bit I don't believe. No govt introduces a temporary tax and then decides voluntarily not to drink from that particular well again. In 2013, Spain and the rest of the Eurozone (and us) will be in the middle of the mother and father of all recessions. I don't think Spain will be able to resist retaining this wealth tax and worse, increasing the rate. After all, try explaining to an unemployed youngster in Madrid why somebody with a €1m boat shouldn't pay a wealth tax on it irrespective of the fact that it doesn't make economic sense. For an example of that, you only need to look at the 'temporary' 50% tax rate in the UK which isn't disappearing any time soon