European Court recently declared that Spain tax on inheritance and gift is, in part, contrary to Community legislation.
Luxembourg has just ruled that the tax is contrary to Community law as it forces foreign residents to pay higher taxes than Spanish residents.
This tribute is regulated by Regions (Communidades autónomas) and these offers tax deductions of which can only benefit the residents in that region. Thus, residents in another EU country or holders of property located outside the country are forced to pay higher taxes.
The Court of Justice of the European Union (ECJ) considers that there is "no objective difference that could justify this difference in treatment" between the situation of a resident and a non-resident or from a property located in Spain or in another country.
European justice agrees with the EU executive, who brought the case to court in 2012, and believes that this involved a "restriction" on free movement of capital, one of the pillars of the European Union.
The judgment, unappealable, is now mandatory for Spain. Spain will have to modify Law 22/2009 on cession of IHT tax to regions so non residents receiving an inheritance in Spain can benefit from regional allowances.
IMPORTANT NOTICE: If you are a non resident and you paid IHT tax in Spain during the last four years, a refund claim is possible now
Parque del Oeste, Malaga, South eastern Spain