Spain has been reported to the EU Court of Justice (ECJ) by the European Commission for discriminatory regulations on Inheritance and Gift Tax (ISD).

The Spanish Inheritance and Gift Tax is regulated at a national level; however regional governments have broad legislative powers.

The majority of autonomous communities have used such powers to reduce taxation, to a greater or lesser extent, whenever their regulations are applicable.

Nevertheless, when an inheritance, bequeath or gift is received by a non-resident individual, national tax legislation is always applied and the tax liability is th...