Article 5 0 1 — Proceeds from the sale of immovable property

– extension of optional use of a reverse charge mechanism for specified supplies to taxable persons such as: services relating to buildings and associated supplies of staff; waste, scrap and recyclable materials; land and buildings in respect of which the option to tax has been exercised; goods taken as security; goods sold in the course of the exercise of an assignee’s rights following the cession of the reservation of ownership; opted land and buildings in the course of a judicial liquidation. These are the identified areas that have proved to be troublesome for the MS, and the regular provisions are insufficient.

The European Commission has decided to refer Spain to the Court of Justice over its taxation of non-residents' capital gains realised on the sale of Spanish immovable property.

In relation to capital gains, non-resident individuals are taxed at a flat rate of 35% on gains from the sale of immoveable property.

The European Commission has sent Spain a formal request to amend its discriminatory legislation concerning the taxation of non-residents' employment-related income and concerning capital gains realised by non-residents on the sale of Spanish immovable property.

According to Article 14 of the draft, confiscated assets or proceeds of the sale of confiscated property shall, after deduction of the executing State's costs, be returned to the issuing State unless otherwise agreed between the issuing State and the executing State.