Spain to launch Financial Transactions Tax

Ernst & Young notes:

The Government announced the creation of a Financial Transactions Tax (FTT); as anticipated, the parliamentary proceeding for its approval (Bill proposal, or Royal-Decree Law) has not been disclosed.

This FTT is said to be in line with the measures already adopted by France and Italy, and backed by the EU.

The tax, as announced by the Government, will be triggered on acquisitions of shares in Spanish listed companies with a market capitalization of, at least, €1,000 million. The applicable rate is 0.2%.

No information on the date on which this FTT would enter into force has been made public.

The full document in Spanish is available at http://www.hacienda.gob.es/Documentacion/Publico/NormativaDoctrina/Proyectos/Tributarios/ANTEPROYECTO%20LEY%20ITF.pdf

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