AMENDMENT TO LAW 29/1987, DATED 18TH DECEMBER, ON INHERITANCE AND DONATIONS TAX

“Second additional provision. Adjustment of the legislation on the Inheritance and Donations Tax to the EU Court of Justice ruling on 3rd September 2014 (matter C-127/12) and adjustment of the settlement declaration of taxpayers who must pay tax to the state tax authorities.

One. Adjustment of the legislation on the Inheritance and Donations Tax to the EU Court of Justice ruling on 3rd September 2014.

1. The settlement of the tax applicable on the acquisition of rights and assets through any lucrative title, in the cases listed below, will comply with the following rules:

1. In the case of the acquisition of rights and assets though inheritance, legacy or any other form of succession, if the deceased was a resident of a member state of the EU or EEA other than Spain, the taxpayers are entitled to the application of the regulations passed by the autonomous region in which the majority of the rights and assets of the estate are located. If there are no rights or assets located in Spain, the regulations of the autonomous region in which each taxpayer resides will be applied.
2. In the case of the acquisition of rights and assets though inheritance, legacy or any other form of succession, if the deceased was a resident in an autonomous region and the inheriting taxpayers are not Spanish residents, if they are residents in a member state of the EU or EEA, the regulations of said autonomous region will be applied.
3. In the case of the acquisition of real estate in Spain, by donation or any other free legal transaction between living entities, when the taxpayers are not Spanish residents but are residents in a member state of the EU or EEA, the regulations of the autonomous region in which said real estate is located will be applied.
4. In the case of the acquisition of real estate in a member state of the EU or EEA, other than Spain, by donation or any other free legal transaction between living entities, Spanish residents are entitled to the application of the regulations of the autonomous region in which they live.
5. In the case of the acquisition of moveable assets in Spain by donation or any other free legal transaction between living entities, when the taxpayers are not Spanish residents but are residents in a member state of the EU or EEA they will be entitled to the application of the regulations of the autonomous region in which the assets were located for a majority of days in the five years immediately prior to the taxable event.

2. For the purposes of what is specified in this article, Spanish residents are considered residents of an autonomous region when they remain in the region for a majority of days in the five years immediately prior to the taxable event.

3. When a donor gives goods or rights to a donee under the application of the rules set out above and the regulations of various autonomous regions is applicable, the amount of tax to be paid will be determined as follows:

1. The average tax rate from applying the state regulations to the total value of donated assets will be calculated, as well as the rate from applying the regulations of each autonomous region in which the assets are situated.
2. The average rate for the application of the regulations of each autonomous region in which the rights and assets are located will be applied to the value of said rights and assets, which will give an amount of tax to be paid.

Two. Adjustment of the settlement declaration of taxpayers who must pay tax to the state tax authorities.

The taxpayers, who are required to pay this tax to the state tax authorities, will have to submit a self-assessment form to determine the amount of tax owed, accompanied by the document or declaration which states the taxable event. When submitting this form, the resulting tax owed must be paid in the place, method and time period determined by the rules set out by the tax authorities.

Información publicada en el BOE-A-2014-12327