Very interesting report issued by the General Direction of Taxes that rules that for the heritage tax, the submission of non –resident contributors to the autonomic or to the state legislation is an option and not an obligation.
Let´s remember that some months ago the European Court of the UE declared illegal the Spanish inheritance tax regulations because excluded the non-residents from the benefits foreseen by the autonomics regulations for the residents in Spain in those specific provinces. And that was the cause of a reform of the heritage and inheritance taxation in order to make possible for non-resident to choose the autonomic regulations in order not to be in worse positon that residents in that province. We are always talking of non-resident people that live in the European Union.
The provinces have the power to regulate not only the allowances and other benefits on those taxes, but also the tax rate of them.
Therefore in those provinces that have pass and new scale of rates for the heritage tax, that might be higher than the scale passed by the State, and then the non-resident contributor can choose whether to pay according with the whole State legislation or the one of the province where the assets are placed.
This option in the inheritance tax is going to be less interesting and alluring as the provinces have passed many and more allowances and benefits than the State legislation on inheritance.
In any of the taxes, what is for sure is that the option has to be for the whole regulations, either the one of the State of the one of the province. You cannot pick what suits you better of each of them.