Tax Relief Granted to “Private-Social” Organizations and State Aid Rules: A Difficult Balance Following Betania (Case C-74/16)

This article examines the applicability of State aid rules to tax incentives granted to non-commercial entities that serve a social function. In particular, the decision in Betania (Case C-74/16) is discussed, wherein the Court found that the exemption from municipal tax for buildings owned by ecclesiastical entities and used for educational purposes was subject to the EU State aid rules, which has narrowed the freedom of Member States to decide on the basic features of their tax system in these areas.