2014 Spanish tax reform: latest amendments
6 Oct. 2014
The Spanish Government approved the tax reform on income tax and VAT last August. Three Draft Laws on State legislation were presented to the Parliament for amendments, being the deadline extended to September 25. The reform on Inheritance and Gift Tax or Wealth Tax has been delayed to next year as part of the future Regional finance model reorganization.
Besides the above, Partido Popular submitted amendments on both regional taxes the very last day, with reforms in compliance with the ECJ sentence to end discrimination.
Inheritance and Gift tax (IHT) is shifted to the Regional Governments except for non-Spanish residents, who are subject to taxation according to the State regulations, being these less favorable. A proposal has been made so that non-Spanish residents are also subject to taxation according to the regional Law applicable to the inherited or gifted assets of highest value.
Wealth Tax will change as well so there will be no different taxation for residents and non-Spanish residents.
Laws are expected to be approved in November and to become in force as of January 2015.