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Inheritance and donation taxes to non-residents in Spain - Espada Gerlach

Inheritance and donation taxes to non residents in Spain. Right to claim for a refund.

The Sentence of September 3rd 2014 of the Court of Justice of the European Union, issued in case C-27/2012, forces at least the Spanish nation to apply the same rate of the Inheritance and Donation Tax to the residents as to the no residents.

This decision is the final step of a long process that began with a request of the European Commission of 11.07.07, and further reports of 07.05.10 and 17.02.11, warning about the discriminatory treatment from the Spanish Government to the non-residents.

 As the different Spanish Governments did not consider tied by those decisions of the EU, they denied changing the Law and the EU had to begin a process based on a breach of the EU Laws that has just ended with the mentioned Sentence, which is immediately in force.

As a consequence, the Government is forced by the Court to change the Lax, but in the meantime the right of non-residents to claim for the refund of the extra payment can begin. 

The period to claim should be the usual of 4 years since the payment of a Tax higher than legal was paid, but we will see how the Spanish Government reacts. 

In this provisory scenario, the most advisable is to sue immediately a claim to the Spanish Tax Office joining the documents related to the payment of the Tax, and also joining a complementary statement with the correct figures and the balance in favour of the non-resident, which will have to be refunded by the Tax Office.

This way, at least the period of prescription will be interrupted.

 Furthermore, it is in question if even in cases already affected by prescription a claim against the Spanish nation could be possible, based on the fact that a law against the law of the EU was used.

 To know more details about this new situation and further related news, do not hesitate to contact us.