CELEX: C2006/326/35
Language: en
Date: 2006-12-30 00:00:00
Title: Case C-345/05: Judgment of the Court (Second Chamber) of 26 October 2006 — Commission of the European Communities v Portuguese Republic (Failure of a Member State to fulfil obligations — Tax legislation — Conditions for exemption of capital gains arising on the transfer for valuable consideration of real property — Articles 18 EC, 39 EC and 43 EC — Articles 28 and 31 of the Agreement establishing the European Economic Area — Cohesion of the tax system — Housing policy)

30.12.2006   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 326/18
            
         Judgment of the Court (Second Chamber) of 26 October 2006 — Commission of the European Communities v Portuguese Republic
   (Case C-345/05) (1)
   
   (Failure of a Member State to fulfil obligations - Tax legislation - Conditions for exemption of capital gains arising on the transfer for valuable consideration of real property - Articles 18 EC, 39 EC and 43 EC - Articles 28 and 31 of the Agreement establishing the European Economic Area - Cohesion of the tax system - Housing policy)
   (2006/C 326/35)
   Language of the case: Portuguese
   Parties
   
      Applicant: Commission of the European Communities (represented by: R. Lyal and M. Afonso, Agents)
   
      Defendant: Portuguese Republic (represented by: L. Fernandes and J. Menezes Leitão, Agents)
   Re:
   Failure of a Member State to fulfil obligations — Infringement of Articles 18 EC, 39 EC, 43 EC and 56(1) EC and of Articles 28, 31 and 40 of the EEA Agreement –National provisions making exemption from capital gains tax arising on the transfer for valuable consideration of real property used as the permanent residence of a taxable person or of his family subject to the condition that such gains are reinvested in the purchase of real property in national territory
   Operative part of the judgment
   The Court:
   
               1.
            
            
               Declares that, by maintaining in force fiscal provisions, such as Article 10(5) of the Personal Income Tax Code, making entitlement to exemption from tax on capital gains arising from the transfer for valuable consideration of real property intended for the taxable person's own and permanent residence or for that of a member of his family subject to the condition that the gains realised should be reinvested in the purchase of real property situated in Portuguese territory, the Portuguese Republic has failed to fulfil its obligations under Articles 18 EC, 39 EC and 43 EC, and under Articles 28 and 31 of the European Economic Area Agreement of 2 May 1992;
            
         
               2.
            
            
               Orders the Portuguese Republic to pay the costs.
            
         
      (1)  OJ C 281, 12.11.2005.