Non-European tax residents will no longer be forced to adhere to Inheritance tax State regulations and will be entitled to the relevant Autonomous Communities’ tax breaks according to the latest Tax office binding consultations and Supreme Court rulings.
Only some years ago, European tax residents would be taxed heavier than Spanish tax residents as they would not qualify to Autonomous Communities’ tax breaks, for the sole reason that they were not tax residents in Spain. The European Court of Justice forced Spain to amend its regulations and cease the detrimental way Inheritance tax was applied to European tax residents.
Therefore, according to the abovementioned rulings, the same must be applied to non-European tax residents, hence they must be able to qualify for Autonomous Communities’ tax breaks.
We should and hope to soon witness an amendment to our Inheritance tax law in order to grant legal certainty upon filing Inheritance taxes and avoid unwanted Tax office notifications.
Have you been in a similar position? We encourage you to contact us in order to review your case and asses on whether you are entitled to a tax refund.