August 3, 2020

European justice annuls the sanction of Brussels to Madrid, Barcelona, ​​Athletic and Osasuna – The Province

The Court of Justice of the European Union has annulled on Tuesday the decision of the European Commission that considered illegal the tax treatment that allowed four Spanish clubs –Real Madrid, FC Barcelona, ​​Athletic Club and Club Atlético Osasuna– stay exempt from the general obligation to become public limited companies.

Brussels concluded in July 2016 that these four teams enjoyed illegal public assistance in the form of a tax privilege in corporate tax for a period of 20 years, as it considered that this scheme was not compatible with the internal market, and ordered the Spain that suppressed it and immediately recovered the benefits granted to the clubs.

Thanks to this differentiated treatment, Madrid, Barcelona, ​​Osasuna and Athletic enjoyed an advantageous tax rate of 25% compared to 30% for other clubs, for which the Community Executive demanded a fine of between 0 and 5 million euros for each team, although the final amount should be set by the Spanish authorities in the process of recovery of the aid.

The European Commission has a period of two months to appeal the decision of the General Court of the TEU.


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