Until last July, receiving inheritances or gifts, where the deceased, heir, donor or beneficiary was not resident in Spain was more expensive than if the same transaction had taken place between residents. 

If the inheritance or gift occurred between residents in Spain, regulations of the autonomous regions were applicable, which enjoy significant tax reductions and benefits.  But, if the same taxable event occurred involving a non-resident, the applicable regulations were those of the state, whose reductions and benefits are much less than those of the autonomous regions' regulations. 

But the Court of Justice of the EU found that such different tax treatment for those resident and those not resident in Spain was discriminatory.

To put an end to such discrimination, new rules are now applicable: if a non-resident intends to transfer property by inheritance or gift and one of the elements of the transaction (testator/donor, heirs/beneficiaries or property) has a foreign component, the taxes to be paid in Spain will be governed by the regulations of the autonomous regions (more favourable) or those of the state (less favourable), depending on whether that component resides in a member state of the European Union or European Economic Area or not. 

Therefore, if you should have paid in accordance with the law of the autonomous regions and you paid in accordance with state law, considering the previous outline, you are entitled to claim the amounts paid unduly.  

By Cristina de Canals. Founding partner.