Spanish Inheritance Tax for Non-Residents
Posted: Tue Apr 14, 2015 7:17 amIt’s always been, over the years, that non-residents were treated differently to residents when it comes to Spanish inheritance tax. After a big review of the situation and attention in the media, at long last the law in Spain has been changed.
The Spanish inheritance tax law that applied to residents and non-residents used to be different in Spain. Traditionally, if a resident left a property to another resident there was very little, if anything, to settle in inheritance tax before taking possession of their inheritance.
However, if a non-resident died and left property to another non-resident then their inheritor would have to pay a high Spanish inheritance tax bill.
In 2010 Spain was told by the European Commission that this practice was discriminatory against non-residents and must change.
At last this has now happened and for non-residents in Spain who are residents in countries that are members of the European Union a modified law was brought in on the 28th November 2014 and applies to all bereavements and donations after January 1st 2015. This new law means that the Spanish inheritance tax for non-residents must not be discriminatory and Residents and non-residents should be treated alike - Regional differences and regulations may apply but in short it means that both will pay the same, with no discrimination between Residents and Non-Residents.
Here's a copy of an article which explains more:
http://www.abacoadvisers.com/spain_expl ... rMarch2015
The Spanish inheritance tax law that applied to residents and non-residents used to be different in Spain. Traditionally, if a resident left a property to another resident there was very little, if anything, to settle in inheritance tax before taking possession of their inheritance.
However, if a non-resident died and left property to another non-resident then their inheritor would have to pay a high Spanish inheritance tax bill.
In 2010 Spain was told by the European Commission that this practice was discriminatory against non-residents and must change.
At last this has now happened and for non-residents in Spain who are residents in countries that are members of the European Union a modified law was brought in on the 28th November 2014 and applies to all bereavements and donations after January 1st 2015. This new law means that the Spanish inheritance tax for non-residents must not be discriminatory and Residents and non-residents should be treated alike - Regional differences and regulations may apply but in short it means that both will pay the same, with no discrimination between Residents and Non-Residents.
Here's a copy of an article which explains more:
http://www.abacoadvisers.com/spain_expl ... rMarch2015