Primacy of European Union law and its effects on the Wealth Tax for non-residents with a real obligation to contribute

Primacy of European Union law and its effects on the Wealth Tax for non-residents with a real obligation to contribute

The modification in the Wealth Tax Law introduced by Law 11/2021, of July 9, is already known, in the sense of eliminating the pre-existing restriction in the application of the regional regulations to taxpayers of the Wealth Tax due to real obligation, Until then limited to residents of countries of the European Union and the European Economic Area.

As of this modification, with effect from 2021, the regional regulations were applicable to any non-resident, including residents in third countries, obliged to contribute to the Wealth Tax by real obligation.

Without prejudice to the above, an interesting ruling from the Superior Court of Justice of the Basque Country has been published, dated November 14, 2022 (3396/2022), which opens the possibility of applying regional regulations to residents in third countries, taxpayers of the Wealth Tax due to real obligation, in years prior to 2021.

To reach this conclusion, the Court refers to the direct application of Union law due to its primacy regardless of when, how and with what scope the transposition of that order into domestic law or the accommodation of this one to the first (Fourth D.A. of the Heritage Law).

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