Spanish Rules for Local Tax Residents Violate EU Law, Court Says

The bloc’s top court said that Spanish rules obliging tax residents to declare their overseas assets or rights violates EU law.

• EU Court of Justice in binding ruling Thursday says the legislation is a “disproportionate” restriction on the free movement of capital
• Court also says the rules go too far “by subjecting the failure to comply with or the partial or late compliance with the obligation to provide information” on assets abroad to fines that are “disproportionate to the penalties imposed in respect of similar infringements in a purely national context and the total amount of which is not capped” ...