Case C‑679/17

Vlaams Gewest and Vlaams Gewest

v

Johannes Huijbrechts

(Request for a preliminary ruling from the hof van beroep te Antwerpen)

(Reference for a preliminary ruling — Free movement of capital — Restrictions — Tax legislation — Inheritance tax — Sustainably managed woodland — Exemption — Protection of wooded areas)

Summary — Judgment of the Court (First Chamber), 22 November 2018

Free movement of capital and liberalisation of payments — Restrictions — Tax legislation — Inheritance tax — National legislation providing for a tax advantage for inherited woodland on condition of sustainable management — Limitation to woodland in the Member State of residence of the taxpayer — Not permissible

(Art. 63 TFEU)

Article 63 TFEU must be interpreted as precluding legislation of a Member State, such as that at issue in the main proceedings, which grants a tax advantage for inherited woodland on condition that it is the subject of sustainable management as defined by national law, but restricts that advantage to woodland situated in the territory of that Member State.

(see para. 43, operative part)