Spain has been referred to the EU Court of Justice by the European Commission due to the country’s inheritance and gift tax rules being deemed as discriminatory to non-residents. The current rules, which require non-residents to pay higher taxes, have been viewed as being in breach of the Treaty on the Functioning of the EU as they potentially restrict the free movement of people and goods.
These current rules regarding inheritance and gift tax allow significant advantages for resident taxpayers over non-resident taxpayers.
If the EU Court of Justice decrees that the Spanish taxes are indeed discriminatory, then Spanish authorities will be forced to revise them, and non-residents who have already paid may find they are entitled to a refund.
If you are an expatriate living or working in Spain, and are interested in how this news could affect you, then you may wish to get in touch with an Independent Financial Adviser. International IFA’s can help with all aspects of overseas tax, visit the Contact an IFA page now to get in touch with a recommended expatriate adviser.