Press Release: Direct Taxation: The European Commission refers Hungary to the Court of Justice over discriminatory tax provisions concerning the duty levied on the purchase of residential property

The European Commission decided to refer Hungary to the European Court of Justice for its provisions concerning the duty levied on the purchase of residential property. Those provisions discriminate against taxpayers whose purchase is preceded or followed by the sale of their previous home in another Member State. The provisions are therefore incompatible with the free movement of persons and the freedom of establishment, as guaranteed by Articles 18, 39 and 43 of the EC Treaty and the corresponding articles of the EEA agreement.

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