One of the issues which could be of interest is the Portuguese situation where non-resident taxpayers who obtain taxable income in Portugal have to appoint a fiscal representative – this sounds familiar in the context of Irish non-residents in receipt of Irish rent.

The Commission has made formal requests to Finland, the Czech Republic and Bulgaria to amend aspects of their tax regime considered to be discriminatory; and has referred Greece, Portugal and Hungary to the ECJ.

Formal Requests

Finland

Non-resident artists and sportsmen

According to the Finnish legislation, non-resident artists and sportsmen pay a final tax of 15% on their revenues from Finland, after certain limited deductions for lodging, transport and daily allowances. Resident artists and sportsmen are subject to a progressive tax rate and may deduct the actual expenses linked to their income.

Czech Republic

Income from rewards and remuneration paid to independent professions, royalties, lease of movable property and from the provision of services, consultancy, advisory, managing, intermediary and other activities

According to the Czech rules, the tax on certain types of income of legal persons and individuals resident in another EU Member State or EEA/EFTA State is assessed on a gross basis, while the tax on the same kind of income earned by Czech residents is assessed on a net basis.

Bulgaria

Treatment of foreign governmental, municipal and corporate bonds

Income from Bulgarian governmental, municipal and corporate bonds are exempt from tax, whereas no such exemption is granted for similar bonds issued abroad.

ECJ Referrals

Greece

Acquisition of a first residential real estate in its territory

The 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. In addition, the Greek rules, provide for an exemption from real estate transfer tax to Greek nationals living abroad when they acquire their first residential property in Greece, while the same exemption is not offered to foreign nationals.

Portugal

Fiscal representative

Under Portuguese Law, non-resident taxpayers who obtain taxable income in Portugal have to appoint a fiscal representative to represent them before the Portuguese tax authorities and to guarantee the fulfilment of their fiscal duties.

Hungary

Purchase of residential property

Under Hungarian law, a person buying a house in Hungary must pay a duty which is calculated as a percentage of the value of the property. Where the property is the taxpayer's home and the purchase is preceded or followed by the sale of his previous home in Hungary, the duty is levied only if and to the extent that the value of the newly acquired property exceeds that of the one sold.

Where the purchase of a taxpayer's home in Hungary is preceded or followed by the sale of his previous home in another Member State, the duty will be calculated as a percentage of the value of the property purchased irrespective of the value of his previous home.

Other Infringement Procedures

The Commission also published press releases concerning infringement against two EU Member States – Greece and Finland.

Greece

Capital duty for companies; and taxable value of used cars.

Finland

Discriminatory taxation of forest income.