Spain has been requested to modify its tax provisions on inheritance and gift tax that impose elevated tax burdens on non-residents and on assets held abroad. According to the Commission, the policy is not compatible with the European agreement on the free movement of workers and capital. From now on, Spain has two months to provide a “satisfactory response” in order to avoid the reference of the case to the EU´s Court of Justice.

The Spanish inheritance and the gift tax are regulated at two levels: Both at the state level and the level of autonomous communities. Normally, the autonomous legislation leads to a considerably lower tax burden than the state legislation does.

The state legislation only applies if the gift of the inheritance does not fall within the ambit of the autonomous community. For example, whenever the recipient is resident abroad or when gifts of property are located abroad. Consequently, the taxpayer is obliged to pay higher taxes than if he/she had been a Spanish resident or of the gift property were located in Spain.

According the Commission, that policy impedes the free movement of persons and capital, as it is stated in the Treaty of the Functioning of the European Union (Article 45 & 63).

As a response to a reasoned opinion that had been sent to Spain on May 5^th, the Spanish legislation has been changed. However, it is still not completely amenable with the EU law. For that reason the Commission has decided to send another reasoned opinion and request Spain to make another adjustment of its legislation. 



Fuente: europa.eu. (Press release 16/02/11)

If you need any advice on taxes in Spain, please do not hesitate and contact Lexland Abogados to solve your trouble: This e-mail address is being protected from spambots. You need JavaScript enabled to view it