Spain Taken To Task Over Tax Treatment Of Diplomatic Employees
The European Commission on Thursday sent Spain a formal request to amend its
legislation with regard to the tax treatment of diplomatic and consular employees. Under the current law, persons resident in a Member State other than Spain,
when recruited to work in a Spanish diplomatic or consular office, cannot benefit
from any personal or family allowances, as they are treated as non-residents
for tax purposes. The Commission considers that this tax provision is contrary to the free movement
of persons guaranteed by the EC Treaty, given that those who are Spanish residents
before recruitment can benefit from these allowances. The EC's request is in the form of a ‘reasoned opinion’, the second
stage of the infringement proceedings provided for in Article 226 of the Treaty.
If Spain does not respond satisfactorily to the reasoned opinion within two
months, the Commission may refer the matters to the European Court of Justice. .
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