Madrid has to set the new inheritance tax levels

Palma.—The European Court of Justice ruled against Spain on Wednesday in a case that could reduce the amount of inheritance tax the country can charge foreigners living in Spain, currently higher than that charged to Spaniards.
More than 12 percent of Spain’s total population were born elsewhere, one of the highest percentage of foreign residents in European Union countries, with most from Romania, Morocco and Britain.

Largest population
And, the largest foreign population is here in the Balearics - 20 percent.
The court said Spanish legislation was discriminatory and there was no reason why inheritance tax should be charged at a higher rate for non-Spaniards than for Spaniards.
The European Commission referred the case to the court in 2012 after considering that the legislation was incompatible with free circulation of people and money within the EU.
The law applies different rates of taxation to inheritances or gifts of property in Spain depending on whether the recipient is Spanish.
While national legislation makes no specific distinction based on residency, inheritance tax rates for Spanish residents are regulated at a regional level.