Court of Justice Confirms annulment regarding Spain’s tax scheme
On 27 June 2025, the Court of Justice ruled in the Joined Cases C-776/23 P to C-780/23 P, confirming the General Court’s judgement that annulled a decision from the Commission declaring Spain’s tax scheme on the deduction of goodwill from indirect acquisitions of foreign shareholdings as unlawful State aid. The contested decision was the third concerning tax exemptions granted in relation to foreign shareholding acquisitions in Spain.
Regarding this decision, the Court noted that the initial decisions referred to both direct and indirect acquisitions of shareholdings. In the initial decisions the Commission considered acquisitions were protected by legitimate expectations. Therefore, both direct and indirect acquisitions must be considered protected. In addition, the Court also found that the principle of legal certainty prevented the Commission from classifying the tax measure as new and unlawful State aid.
For more information, see the judgment.