Case C‑74/16
Congregación de Escuelas Pías Provincia Betania
v
Ayuntamiento de Getafe
(Request for a preliminary ruling
from the Juzgado Contencioso-Administrativo no 4 de Madrid)
(Reference for a preliminary ruling –– State aid –– Article 107(1) TFEU –– Meaning of ‘State aid’ — Meaning of ‘undertaking’ and ‘economic activity’ –– Other conditions for the application of Article 107(1) TFEU –– Article 108(1) and (3) TFEU –– Meaning of ‘new aid’ and ‘existing aid’ –– Agreement of 3 January 1979 between the Kingdom of Spain and the Holy See — Tax on construction, installations and works –– Exemption for buildings belonging to the Catholic Church)
Summary — Judgment of the Court (Grand Chamber), 27 June 2017
1. Competition — EU rules — Undertaking — Meaning — Exercise of an economic activity — Meaning — Religious institution carrying on educational activities — Educational activities carried on within a system of public education and financed from public funds — Not included — Educational activities organised by the institution itself and not subsidised by the State — Included
(Art. 107(1) TFEU)
2. Competition — EU rules — Undertaking — Meaning — Exercise of an economic activity — Religious institution carrying on economic and non-economic activities — Non-economic activities financed by public funds — Obligation to keep separate accounts in order to prevent cross-subsidisation
(Art. 107(1) TFEU)
3. Competition — EU rules — Undertaking — Meaning — Exercise of an economic activity — Religious institution carrying on economic and non-economic activities — Tax exemption for buildings belonging to that institution — Tax exemption falling within the scope of the competition rules — Condition — Buildings intended to be used at least in part for carrying on economic activities
(Art. 107(1) TFEU)
4. State aid — Meaning — Grant of an advantage to the beneficiaries — State intervention mitigating the burdens normally included in the budget of an undertaking — Included
(Art. 107(1) TFEU)
5. State aid — Meaning — Grant attributable to the State of an advantage by means of State resources — Tax exemption provided for by national legislation — Included
(Art. 107(1) TFEU)
6. State aid — Effect on trade between Member States — Adverse effect on competition — Criteria for assessment — Aid of minor importance
(Art. 107(1) TFEU; Commission Regulation No 1998/2006, Art. 2)
7. State aid — Existing aid and new aid — Meaning
(Art. 108(1) and (3) TFEU)
8. State aid — Meaning — Tax exemption granted by public authorities to certain undertakings — Exemption for buildings belonging to the Catholic Church from a tax on construction, installations and works — Included — Conditions
(Art. 107(1) TFEU)
1. See the text of the decision.
(see paras 41-50, 55-58)
2. See the text of the decision.
(see para. 51)
3. See the text of the decision.
(see paras 52-54, 59-62)
4. See the text of the decision.
(see paras 65-68)
5. See the text of the decision.
(see paras 74-77)
6. See the text of the decision.
(see paras 78-84)
7. See the text of the decision.
(see paras 86-89)
8. A tax exemption such as that at issue in the main proceedings, to which a congregation belonging to the Catholic Church is entitled in respect of works on a building intended to be used for activities that do not have a strictly religious purpose, may fall under the prohibition in Article 107(1) TFEU if, and to the extent to which, those activities are economic, a matter which it is for the referring court to determine.
(see operative part)