A new law entered in force at the end of 2014, which changes drastically the Inheritance Tax in Spain. During years, EU Non Residents in Spain were not treated in the same way as Spanish Residents for Inheritance Tax. This treatment has now considered as discrimation from the European High Courts, and, consequently, forced to Spain to change Inheritance Tax normative, in order to allow EU Non Residents to get the same benefits and reduction in taxes as Spanish Residents.
In September 2014, European High Courts decision confirmed discriminatory treatment to Non Spanish Residents made by Tax Laws from Spanish regional governments. Before this decision, Spanish residents may have access to determinate benefits and tax reductions in inheritance, offered by the different regions in Spain. Non residents were not considered as beneficiaries of these reductions, so, consequently, paying more taxes than Spanish residents.
Just before the end of this year, a new regulation of the Spanish government entered in force.
icon-arrow-circle-down Main consequences are:
icon-group EU citizens non residents in Spain will be treated as “residents“ as per inheritance tax reductions. So, non residents have the same rights as residents for reductions and taxes.
Also, this affects also to transissions from parents to descendants, spouses, or ascendants, in live (Donations). Up till now, these kind of ownership transfers were taxed as well as inheritance, with more or less the same taxes. Now, all the befenits and reductions for inheritance may be obtained in transfers of ownership between direct members of the family (ascendants, descendants and spouses).
icon-fast-forward There is a process to claim back the over-taxed payments from all those payers who were taxed with the previous system.
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