When a donation or inheritanceis received, it is important to know where to pay for it, since the differences in taxation between all the autonomous communities can be very varied.

Location rules to determinate under which taxation legislation is an inheritance:

In any inheritance (Inheritance tax) there are always at least two subjects, the causative (deceased who transmits the inheritance) and the successor in title (heir who receives the inheritance).

 

Causative fiscal residenceHeir fiscal residenceObject of taxationApplicable legislation
SpainSpainAllAutonomous community of the causative
   
ForeignGoods in SpainIf the heir is NOT EU resident, State legislation applies
If the heir is UE resident, legislation of the autonomous community of the causative can be used 
  
Goods outside of SpainNot subject in Spain
    
ForeignSpainGoods in SpainAutonomous community where the majority of goods engrain
  
Goods outside of SpainAutonomous community of the Heir
   
ForeignGoods in SpainIf the heir is NOT UE resident, State legislation applies
If the heir is UE resident, legislation of the autonomous community where the majority of gods engrain can be used
  
Goods outside of SpainNot subject in Spain

Location rules to determinate under which taxation legislation is a donation:

In any donation there are always at least two subjects, the donor (who transmits the donation) and the donator (who receives the donation).

Donor fiscal residenceDonator fiscal residenceObject of taxationApplicable legislation
SpainSpainProperties in SpainAutonomous Community where the property is located
Properties outside from SpainIf the property is not located in the EU, state regulation
If the property is inside the EU, it can use the regulation where the donator resides
RestAutonomous community of the donator
ForeignGoods in SpainIf the donator is not resident of the EU, state regulation applies
If the donator is resident of the EU, autonomous community regulation can be used where to goods engrain*
Goods outside of SpainNot subject to Spain
ForeignSpainPropertiesAutonomous community where the majority of goods engrain
Properties outside of SpainIf the property is not in the EU, state regulation
If the property is in the EU, legislation from the residence of the donator can be used
RestAutonomous community of the donator
ForeignPropertiesIf the donator is no EU resident, then State regulation applies
If the donator is EU resident, regulation of the autonomous community where the goods engrain can be used *
RestNot subject in Spain
* The property goods engrain where they have been more days in the last five years.

In any donation or inheritance, we advise to seek for the counselling of experts in order to determinate which legislation must be used, since there are different situations to take into account, for example:

  • Peculiarities of the legislation of the Provincial Councils of Basque Country and Navarre.
  • Existence of double taxation agreements with different countries, as well as other systems to avoid international double taxation.