US Expat Taxes in Spain
Spain is an increasingly popular destination for American expatriates drawn by its quality of life, climate, and culture. Understanding the tax implications of living in Spain is crucial, particularly regarding the Beckham Law and dual foreign asset reporting requirements.
Tax Treaty Information
- Reduced withholding rates on dividends (10-15%), interest (10%), and royalties (5-10%)
- Pension income provisions with sourcing and taxation rules
- Real property gains taxation provisions
- Government service income allocation
- Student and trainee exemption provisions
FBAR & FATCA Requirements
US citizens in Spain must report all Spanish bank accounts, investment accounts, pension plans, and insurance products on the FBAR if aggregate values exceed $10,000. Spain has a FATCA intergovernmental agreement. Additionally, Spain requires its own foreign asset reporting via Modelo 720 for assets exceeding 50,000 euros per category.
Foreign Earned Income Exclusion (FEIE)
US expats in Spain can qualify for the FEIE through the Bona Fide Residence Test or Physical Presence Test. Spain's progressive tax rates (19%-47%) make the Foreign Tax Credit often more beneficial for higher earners.
Need Expert Help Filing from Spain?
Our Enrolled Agents specialize in US expat tax filing and can ensure you're fully compliant with both US and Spain tax obligations.
Common Tax Issues in Spain
- 1Spain's Modelo 720 foreign asset reporting creates dual reporting obligations alongside FBAR
- 2The Beckham Law special tax regime interaction with US treaty benefits
- 3Spanish wealth tax varies by region and is not creditable as income tax
- 4Spanish pension plans have different treatment under US tax rules
- 5Non-resident vs. resident tax status determination impacts both jurisdictions
- 6Spanish capital gains from property sales and interaction with US reporting
Filing Deadlines
Local Tax Rates
19%-47% (varies by autonomous community)
19%-28%
21% (10% reduced, 4% super-reduced)
Local Resources
US Embassy in Madrid
Consular services for US citizens in Spain
Agencia Tributaria
Spanish national tax agency
IRS International Taxpayers
IRS resources for US citizens abroad
Frequently Asked Questions: US Taxes in Spain
What is the Beckham Law and can US expats use it?
Do I need to file Modelo 720 as a US citizen in Spain?
How does the Spanish wealth tax affect me?
Is my US 401(k) or IRA reported on Modelo 720?
Related Country Guides
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