The Spanish Inheritance and Gift Tax (Ley 29/1987) is the responsibility of the Spanish regional governments (Comunidades Autónomas).
According to this law, who is resident in Spain (183 days rule) is liable for this Tax for all the assets inherited, regardless of where they are located.
In the following, we present the main tax changes you must consider if you have already invested in Spain or if you’re thinking about investing or to do business in this country.
1. As a result of the recent judgment of the European Court of Justice (judgment of 09.03.2014), with which the unequal tax treatment of tax residents and non-tax residents was declared illegal, the tax on the inheritance of property in Mallorca between relatives amounts to 1%.