On September 3, the European Court of Justice ruled that Spanish legislation that charges higher inheritance taxes to foreigners and on foreign property than it charges Spanish residents is discriminatory.  Generally, regional Spanish laws waive high inheritance taxes where the donor and beneficiary are Spanish residents and when the property inherited is in Spain.  The national tax rate applies, frequently at a much higher rate, to non-Spanish residents.  The Court ruled that such legislation creates unlawful restrictions on capital flows across member state borders.