Morning Amarafie,
This is explained in my article Changes to Spain’s Inheritance and Gift Tax Law – 21st February 2015.
In both cases the inheritor is liable for Spanish Inheritance Tax. More on this tax in my articles:
I. Inheritance Rules
a) Deceased is non-tax resident. If the deceased was resident in a Member State of the European Union or else in the European Economic Area (non-tax resident in Spain) the beneficiary will now benefit from:
• The regional tax allowances where the majority of the assets of the deceased are located in.
• If there are no assets in Spain, the rules of the Autonomous Community where the beneficiary lives apply.
b) Deceased is tax resident and beneficiary is non-tax resident. If the deceased was resident in Spain and the beneficiary is resident in a Member State of the European Union or else in the European Economic Area (non-tax resident) he will benefit from:
• The regional tax allowances where the deceased lived.
Regards