Discrimination between European and Non-European residents in the Inheritance and Gift Tax

As you may know, the Inheritance tax to pay in Spain was different depending on your place of residence. Until now, citizens from outside the European Union paid higher rates than Europeans. But this situation is about to change.

Dicrimination – A Serious Violation

The Spanish Supreme Court has ended the discrimination between resident and nonresidents in the European Union.

So far, those who were taxed residents in Spain or in any country of the European Union had the right to apply many benefits in terms of reductions in the Inheritance and Gift tax than residents outside the European Union.

The Spanish Supreme Court, following a ruling of the High Court of Justice of the European Union, has determined that this discrimination of treatment is a serious violation of the principle of free movement of capital, established in Article 63 of the Treaty of flexibility of the European Union (TFEU), which also protects residents in non-EU countries.

Possibility of Rebate

This judgment opens the possibility of initiating a procedure for getting a rebate for all those who have paid the tax for any inheritance or gift for residents in non-EU countries in the last four years. Non- European residents can claim back the amount which exceeds the rate that European residents would pay in the same situation.

If you are in that situation, do not hesitate to contact us. VILLE Consulting will be happy to help you.

Article by:

Laura Miralles
Consultoria Vile
Telf.: 615466844 / 966462373
Email: lmiralles@consultoriavile.com
Web: https://www.consultoriavile.com/
Av. Palmela, 18, local 7 – 03730 Xàbia/Jávea (Alicante)