Judgment of the Court (Second Chamber) of 3 September 2014 — European Commission v Kingdom of Spain
(Case C-127/12) 1
(Failure of a Member State to fulfil obligations — Free movement of capital — Articles 21 TFEU and 63 TFEU — EEA Agreement — Articles 28 and 40 — Taxation of inheritances and gifts — Distribution of powers of taxation — Discrimination as between residents and non-residents — Discrimination according to where the immovable property is situated — Burden of proof)
Language of the case: Spanish
Parties
Applicant: European Commission (represented by: W. Roels, R. Lyal and F. Jimeno Fernández, acting as Agents)
Defendant: Kingdom of Spain (represented by: A. Rubio González, Agent)
Operative part of the judgment
The Court:
declares that, by applying different tax treatment to donations and successions between beneficiaries and donees resident in Spain and those not resident in Spain, between bequeathers resident in Spain and those not resident in Spain, and between donations and similar transfers of immovable property situated within and outside of Spain, the Kingdom of Spain has failed to fulfil its obligations under Article 63 TFEU and Article 40 of the Agreement on the European Economic Area of 2 May 1992;
dismisses the action as to the remainder;
orders the Kingdom of Spain to pay the costs.
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1 OJ C 126, 28.4.2012.