Article IV of the Agreement of 3 January 1979 (“the Agreement”) between the Spanish State and the Holy See concerning financial matters provides that:

“1. The Holy See, the Bishops’ Conference, dioceses, parishes and other territorial units, religious orders and congregations and ‘institutes of consecrated life’ and their provinces and houses shall be entitled to the following exemptions:

(A) …

(B) full and permanent exemption from taxes on property and earnings from property, as regards income and assets.

This exemption shall not apply to income arising from economic activities or from assets belonging to the Church in respect of which use has been assigned to third parties; nor shall it apply to capital gains or to income which is subject to deduction at source of income tax.”

The Congregación de Escuelas Pías Provincia Betania is on the register of religious entities kept by the Spanish Ministry of Justice and the Agreement applies to it. It owns a complex of buildings in Getafe and La Inmaculada school, which is run by the Congregation, is part of that complex [13]. Continue reading →