Are you trying to understand taxes in Spain for US citizens? This guide gives you a clear and simple overview of taxes in Spain for US citizens living in Spain, including income tax, wealth tax, deadlines, tax brackets, and the US–Spain Tax Treaty. Everything is explained here so you can stay compliant and avoid costly mistakes.
American Living in Spain Taxes Explained
Every U.S. citizen living in Spain taxes under two authorities: the Spanish Tax Agency and the U.S. Internal Revenue Service. Spain taxes its residents on worldwide income, while the U.S. taxes its citizens globally, regardless of where they live.
That means dual filing is mandatory, and correct coordination through the tax treaty Spain USA is essential.
When you spend more than 183 days in Spain or your primary economic and family ties are located there, you are considered a Spanish tax resident. This is when you become liable for Spanish taxes and must evaluate the double tax treaty U.S. Spain to avoid being taxed twice.
Understanding the Tax Treaty Spain USA and Why It Matters
The spain and us tax treaty helps prevent double taxation by deciding which country taxes specific income categories like salaries, dividends, or pensions.
While this tax treaty U.S. Spain allows for foreign tax credits and exemptions, the U.S. “savings clause” still obliges American citizens to file yearly with the IRS.
For professionals, retirees, or investors, this coordination between both systems can be complex. That’s why having a U.S. tax accountant in Spain who understands both frameworks is vital.
Requirements for Taxes in Spain for US Citizens
Before starting, remember:
Please note that all foreign documents must be translated and apostilled in order to GET LEGAL tax advice. Our legal team will guide during this process from the documents gathering until the visa application.
If you are an American subject to taxes for U.S. citizens living in Spain, you will need the following:
- Proof of residence status (to determine if you are subject to us expat taxes in Spain or non-resident rules).
- U.S. income documentation (W-2, 1099, or SSA-1099 forms).
- Bank statements and investment records in Spain or abroad.
- Evidence of pensions or retirement income to verify does Spain tax U.S. pensions or does Spain tax U.S. retirement income.
- Asset declarations (Modelo 720 and Spanish wealth tax for U.S. citizens if applicable).
- Prior-year U.S. returns for coordination under the tax treaty Spain U.S.
If you are unsure does Spain tax citizens abroad, remember Spain only taxes worldwide income if you are a resident. Non-residents are taxed solely on Spanish-sourced income.