Brussels, 20/02/2009 (Agence Europe) - On Thursday 19 February, the European Commission decided to refer three member states (Greece, Hungary and Portugal) to the European Court of Justice for discriminatory fiscal practices. Greece will be asked to explain its national rules on the acquisition of a first residential real estate in its territory. Greek legislation exempts permanent residents in Greece from real estate transfer tax on the purchase of their first residential property, but does not grant the same exemption to first-time buyers who do not live permanently in Greece (with the exception, in some circumstances, of Greek citizens. The Commission considers that Portuguese legislation, which requires non-resident tax-payers to appoint a fiscal representative if they obtain taxable income in Portugal to be incompatible with European Treaty rules. Hungary will have to explain itself to the Court over its tax legislation on the purchase of residential property. The provisions discriminate against taxpayers whose purchase is preceded or followed by the sale of a home in another member state.
The Commission also sent reasoned opinions to three member states (Bulgaria, Finland and the Czech Republic). It has asked Bulgaria to change its tax provisions according to which income from Bulgarian governmental, municipal or corporate bonds are exempt from tax, whereas no such exemption is granted for similar bonds issued abroad. Finland will receive a formal request to amend its legislation which taxes non-resident artists and sportspeople more heavily than their counterparts established for tax purposes in Finland. The Czech Republic taxes some non-residents' income of Czech origin on the basis of gross income, while residents can deduct expenses related to the same income. The Commission believes Czech legislation to be incompatible with the European Treaty. (M.B./transl.rt)