In 2014 the Court of Justice of the European Union pronounced a judgment that eliminated the discrimination that existed between residents and non-residents in the field of Gift & Inheritance Tax in Spain.
Each region in Spain has different allowances for Gift & Inheritance Tax. However, before the Court of Justice judgment, non-residents could not benefit from them. Non-residents were liable to pay high Inheritance Taxes, which in most cases reduced considerably the Estate inherited.
Since 2015, non-residents can take advantage of the same allowances than Spanish residents. For instance, in the Autonomous Region of Valencia, there is currently an allowance of €100.000 per heir / recipient of the gift. This applies to assets located in this region, when the heirs are immediate family, this means, parents, children, grandparents or grandchildren, irrespective of whether they are Spanish residents or not.
Therefore, it is important to compare the inheritance process with the gifting process, costs and expenses involved, and analyse these two options. The current conditions are quite advantageous, and we do not know what the future will hold in terms of inheritance.
As solicitors specialising in Inheritance Law in Spain, we would recommend you to consider the possibility of gifting property to your future heirs; this may save your beloved ones trouble, time and money in the future.
Should you have any further questions related to this topic, please do not hesitate to contact us. We will be pleased to reply to your queries with no obligation on your part.