Under Spanish Law, regions have the right to apply different rates for the Inheritance and Donation Tax. In some regions this rates are higher than others, therefore there is a discrimination between taxpayers depending on which region the tax has to be paid.  

 

In the case the taxpayer could not apply the rules of a concrete region, for instance, for having the condition of non-resident in Spain, they have to apply another Spanish Law. The consecuence is that the tax to pay can be much higher than in the case of residents in Spain.  .

 

This tax regulation is discriminating between both residents and non-residents. 

 

The European Court of Justice ruled last september that the Spanish Government must take the necessary measures to avoid this discrimitation.

 

The Court doesn't mention some questions that are to be solved now:

 

- Applicable Law to the taxes that are to be paid in this moment by non residents.

- Possibility to get the tax refund for the taxes paid under the non legal Spanish regulation

- How is going to regulate the tax the Spanish Government in order to treat all taxpayer equally.