A Spanish Supreme Court ruling is likely to spare UK citizens high tax payments on Spanish inheritances in Gran Canaria.
Specifically, the court ruled in 2018 that Spain can’t prevent non-resident beneficiaries of a gift or inheritance from outside the EEA (European Economic Area) from benefiting from regional tax reductions. This means that it is likely that UK citizens, along with other non-EU and EEA citizens, will continue to claim generous regional exemptions on gifts and inheritances in Gran Canaria, the Canary Islands and Spain.
As an example, the Canary Islands Government exempts all inheritances between direct family members of 99.9% of tax due. Direct family members are considered: spouses, children, parents, adoptive parents or children, and, from January 2019; siblings, father/mother/son and daughter in law, and extended family such as uncles, aunts, nieces and nephews.
The ruling may also allow non-EEA resident taxpayers to claim back succession and gift tax paid during the last four years (the statute of limitations period).
Our specialist property law and non-resident tax office, based in Arguineguín, is always happy to answer any questions you have about Spanish tax and inheritance rules for non-resident property owners in Gran Canaria.