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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.

Legal tip 1289. REFUND! of your Inheritance Tax
24 April 2015 @ 13:09


 Inheritance tax in Spain is paid by the heirs

If the beneficiary is a Spanish resident:

According to provision 6 of Act 29/1987 on Inheritance and Donation tax, you will be liable in Spain for the acquisition of all the inherited assets regardless the country they are located. Taxes paid in a foreign country by similar concept will be deducted according to a rule established in provision 23 of the Spanish Inheritance Tax Act.

If the beneficiary is not a Spanish resident:

According to provision 7 same Act, he will be under Spanish Inheritance tax obligation by real obligation (location of goods), and will have to pay Inheritance tax for those goods and rights located in Spain.

From date of death of the deceased, there is 6 months to pay the inheritance tax return. 

There is no agreement for the avoidance of double Inheritance taxation between Spain and the United Kingdom.

European Court recently declared that Spain tax on inheritance and gift is, in part, contrary to Community legislation as it forces foreign residents to pay higher taxes than Spanish residents.

Why is this?

Becuause this tribute is regulated by Regions (Communidades autónomas) and these regional inheritance tax regulations offer 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 as they tribute under the national scale, which does not have those reductions.

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 and believes that this involved a “restriction” on free movement of capital, one of the pillars of the European Union.

The judgment 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.

Discriminatory payments made during the lñast 4 years in Spain can be claimed back from Treasure administration. 

Please, fill and submit the form below now if you think you can claim. We will send further info and free appraisal to you.

If you have any question or problem related to the above articles or to any other legal matter in Spain, please contact us:
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