The Prime Minister of Spain denounced the plan by the construction giant Ferrovial to move its headquarters to the Netherlands, accusing it of not wanting to pay its fair share of taxes.
The decision of Ferrovial, one of Spain’s largest companies, has caused a political storm in Spain ahead of regional elections in May and general elections later this year.
The company said Tuesday that the move will give access to cheaper credit and make it more attractive to equity investors ahead of the planned stock listing in the United States, and will not affect its operations in Spain or elsewhere.
But the Spanish government accused Ferrovial of seeking to benefit from lower Dutch taxes on corporate income and dividends.
Ferrovial’s billionaire chairman, Rafael del Pino, has been critical of Socialist Prime Minister Pedro Sanchez and his left-wing coalition government.
“We are talking about tax fairness here,” Sanchez said when asked about the controversy during a press conference in Helsinki with his Finnish counterpart Sanna Marin.
“Tax justice means that those who have more should contribute more to the public treasury, pay more taxes, and this is the debate behind what Mr. del Pino is doing.”
Sanchez’s government has angered some business leaders with an unprecedented tax on “extraordinary” profits from major banks and energy companies, to fund public spending to help households and businesses cope with rising inflation.
Sanchez had criticized Ferrovial’s chairman on Wednesday, saying “there is an incredibly positive example in Spain of great businessmen dedicated to their country”.
“I don’t think this is Mr. del Pino’s case.”
Del Pino, 64, who controls about 20 percent of Ferrovial, is Spain’s third-richest person, with a fortune of about US$4.5 billion ($4.8 billion), according to Forbes.
Founded in Madrid in 1952, Ferrovial operates London’s Heathrow airport, and its motorway division includes projects in Australia, Canada and the United States.