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Europe Daily Bulletin No. 9158

24 March 2006
Contents Publication in full By article 37 / 40
GENERAL NEWS / (eu) eu/state aid
Commission calls for abolition of Spanish tax incentive mechanism for foreign investment

Brussels, 23/03/2006 (Agence Europe) - On Wednesday, the Commission called on Spain to put an end to the tax incentive regime in favour of Spanish companies that invest abroad. The decision comes within the framework of cooperation procedure as the aid regime already existed before Spain joined the EU in 1986. Under this scheme, Spanish companies benefit above all from a 25% tax credit on amounts invested to set up a subsidiary abroad, to acquire a substantial stake in a foreign company or...

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