Inheritance Tax for Non-residents

Hi - I am a first time poster but have been receiving the EoS email for a few years now.  I live in the UK but have a property in the Mijas area.

The Spanish government were told by the EU a couple of years ago that they had to change their inheritance tax (IT) laws, which penalise non-resident property owners in comparison to residents.  A deadline was set for the changes to be implemented.

Presently there are different rates of IT in the different regions of Spain, with Andalusia having the highest rate of 18% (it is just 2% in some areas).  Residents do not pay 18% and have taxable deductions applicable to spouses, children etc. that lower their IT bill considerably.

The partners or children of many non-resident home owners in Andalusia are crippled financially when the owner dies - imagine having to pay 18,000 euros on a 100,000 euro property - just to keep it in the family.  Or 36,000 euros on the average 200,000 euro home!

It has all gone quiet on the subject from the Spanish governement - unless of course I have missed out on any announcement. 

Has anyone heard anything on this very "taxing" issue?  Grateful for any replies. 

What we do want is a level playing field for non-resident property owners, whom the Spanish government seem to regard as milk cows - probably because we have no vote or representation.  I complained to Brussels about this some time ago as a result of which Spain was told to get its house in order.  So far they have singularly failed to do so.  The next step is a reference to the European Court.

Johnzx that is a fairly selfish and inane reply.  I'm sure if UK income tax rates were differentiated in the UK regions you would not see that as fair and equitable (or substitute Spain for UK if you are resident there).

Why should I or my family pay 18% IT when you (if you a NIMBY living in Alicante) get off with 2%. You seem also to miss the point that there is discrimination and inequality in this matter.  Plus not many people can afford the IT at 18% and are in a Catch22 situation where they cannot sell their property to pay the IT, with market conditions as they are.

A concerted campaign to the EU is required so that the tax can be equalised at a fair level.  It worked with the unfair Wealth Tax a few years back when Europe told Spain to ditch it, as it discriminated against non-residents.

I and others in Andalusia just want to be treated equally with residents of the area, who are not left impoverished by the IT.

Rob

Johnzx that is a fairly selfish and inane reply.

Well thanks for that rude reply !

I too live in Andalucía.

As I said, if all the regions had to comply with central government then everyone would  as bad off.

Just because it is the system Spain has doesn't mean it is right!! 

As you say Johnzx you live in Andalusia - therefore it doesn't apply to you as you are a resident.

Nothing like an I'm all right Jack (or John) attitude, is there.

In other words we non-residents are subsidising you residents.  Really fair :-( 

The law has altered in many respects to discriminate against me  since I bought in 1980, and I (and many others in a similar situation) have had no say in it.  Is this fair?  Fortunately Brussels agrees with me on this one.  It is supposed to be a principle of the EU that there should be no discrimination between European citizens - more "honoured in the breach than the observance" by Spain.