EC: Spain is Being Sued For Heavy Sanctions Applied to Offshore Companies

The European Commission is taking Spain to court for “excessive sanctions” imposed on Spanish taxpayers who do not report assets located in other EU member states.

The European Commission does not object to the reporting obligation itself but believes that the fines associated with it are “higher than for similar violations carried out within the country and sometimes they may even exceed the value of assets held abroad.”

The European Commission thinks that these measures are unreasonable and discriminatory and also discourage businesses and individuals from investing in foreign companies. It is reported that formal notification of the violation was sent to Spain in November 2015, however the state did not take any steps to change the situation.