Spain has been given six months by the European Court of Justice to change inheritance tax rules which mean non residents can pay 80% or more than residents on property and goods inherited in Spain.
The EU has ruled that the Spanish authorities cannot charge different rates of inheritance tax for residents and non-residents.
Non-residents who have been discriminated against by paying more tax than Spaniards for inheritances or gifts of property are likely to be due a refund for the difference although they may have to go to court to secure these funds.
There are different rules for different areas in Spain and in Murcia a spouse is entitled to a 99% reduction on inheritance tax. If the property is 50% owned by both spouses this would mean a 99% reduction on 50%.
Generally, in Spain this reduction is 95% if the property has been the habitual home of the spouse/partner/or close member of the family for more than 10 years before the date of inheritance.
According to the ruling the Spanish authorities must change the rules on inhertince tax for non residents by January 2016.
Readers are also reminded that, according to a change in the EU Law affecting wills, from August 2015, you can opt for your will to be executed under British law. This avoids the Spanish inheritance laws which can be complicated rules and may go against your wishes.
There is no need to go to a solicitor or an assesor to make your will under this EU law. The notary in Calasparra will advise you and will draw up the will and sign it for you. The signatrure of the will by the notary is a legal requirement.
Before starting this process you can ask how much this will cost as the fees are now set in law. These are substantially lower than solicitor´s fees. However, you will need to take an interpreter.
