Canary Government has promised to meliorate 99 per cent the quota of Inheritance and Gift Tax . Presumably, this will mean a reduction of inheritance renounces to inheritances that have been produced in a high percentage. Somehow, it is reestablished the system in vigour up to July 2012 (exemption of this tax). This will affect first and second degree relatives (i.e.: parents, children, grandparents, grandchildren). The bonus will be applied to succession by reason of death and “inter vivos” donation. According to the General Council of Judicial Power (CGPJ) the renounces to inheritances have been quadruplicated during the last four years (especially in 2013 and 2014).
We have to recall the judgment of the European Court of 3rd September 2014, ruling that the Inheritance Tax and Gift Tax in Spain is in breach with European legislation, enforcing non-residents to pay more than residents, which means a restriction to the free circulation of capital.
In Spain, the Inheritance and Gift Tax is a State Tax whose management has been ceded to the Autonomous Communities. However, the State regulation (more expensive) is applied to non-residents who cannot take advantage of the Autonomous Communities rules. The European Court does not refer to the differences of different autonomic laws in relation to the tax, but to the differences between Spaniards and non-Spaniards within the EU (or between residents and non-residents).