Regarding the Judgment issued in case C-788/19 Commission/Spain

In accordance with the Judgment issued in case C-788/19 Commission/Spain (Obligation of information in tax matters), the national legislation that obliges tax residents in Spain to declare their assets or rights located abroad is contrary to the Law of the Union.


Essentially, the restrictions on the free movement of capital that this legislation imposes are considered to be disproportionate.


On February 15th, 2017, the Commission issued a reasoned opinion in which it declared the incompatibility with Union law of certain aspects of the obligation of tax residents in Spain to declare their assets or rights located abroad by means of a form called “model 720”.


According to the Commission, the consequences derived from non-compliance with this obligation are disproportionate in view of the objectives pursued by Spanish legislation, which are to guarantee the effectiveness of fiscal controls and fight against tax fraud and evasion.


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