European Court Rules Against Spain on Discriminatory Tax

By Evan Abrams

The European Court of Justice has ruled that Spain may not charge a higher inheritance tax to non-residents. The country had been operating under a bifurcated system where a variety of exemptions available only to Spanish residents left a yawning gap in the effective tax rate. The court explained that such a system undermines the spirit and goals of an economically integrated European Union. The Telegraph reports that foreign residents will be able to apply for a reimbursement, but notes they may have to wrangle with the Spanish government before they actually receive a payment.