Expert Tax Help for American Expats in Spain: Navigating US and Spanish Returns

For many Americans, moving to Spain is the realization of a long-held dream. But as exciting as life in the sun can be, it comes with navigating both US and Spanish tax systems. Our team of Enrolled Agents (EAs) and Spanish lawyers comes in here. We provide American expats living in Spain with more than just tax compliance services—we offer comprehensive tax advice and planning, helping you make informed decisions throughout the year, not just at tax time.

With more than 100,000 Americans moving to Spain in recent years, according to Spain’s National Institute of Statistics (INE), the need for specialized tax assistance has never been greater. Whether you plan to self-employ, invest in Property, or take advantage of Spain’s Beckham Law, we’re here to help. Our Enrolled Agents and Spanish tax lawyers understand the intricacies of both tax systems, ensuring you meet your obligations while minimizing your tax burden.

We are here to support US & Spanish Tax Filing Help for American Expats.

How Our Enrolled Agents and Spanish Lawyers Can Assist You

Living in Spain as an American expat means you’ll face tax obligations in the US and Spain. While it’s clear that Americans must always file taxes with the IRS, the nuances of how to report income, claim deductions, and take advantage of exemptions can be confusing. Our team of Enrolled Agents and Spanish lawyers provides year-round tax advice to ensure that you don’t just file your returns—you’re making the most of your financial situation. Here are a few scenarios where our services can make a significant difference:

Starting a Business or Self-Employment in Spain

One of the most exciting opportunities for American expats in Spain is the chance to start a business or work as a freelancer. However, this comes with several tax considerations that differ from what you may be accustomed to in the US.

US Tax Obligations: As a self-employed individual, you will need to file Schedule C (Profit or Loss from Business) with your US tax return (Form 1040), even if your business is based in Spain. You may also be eligible for the Foreign Earned Income Exclusion (FEIE), which can exclude a significant portion of your foreign earnings from US taxation.

Spanish Tax Implications: Self-employment income is taxed differently than salaried income in Spain. You’ll be required to register as an “autónomo” (self-employed person) with the Agencia Tributaria and file taxes under the Modelo 100. Additionally, you may need to make quarterly payments for Social Security contributions, which can be a significant expense.

Our Enrolled Agents can guide you through US and Spanish tax returns to ensure you comply with both systems. We can also help structure your business tax-efficiently, minimizing your tax burden in both countries.

Utilizing the Beckham Law for Employment in Spain

Spain offers a special tax regime for foreign workers known as the “Beckham Law,” which is especially attractive to American expats moving to Spain for work. This law allows qualifying individuals to pay taxes only on their Spanish-source income rather than their worldwide income, which can lead to significant savings.

US Tax Considerations: Even if you benefit from the Beckham Law, you will still need to file your US tax return, reporting worldwide income. However, our Enrolled Agents can help you minimize double taxation by applying for the Foreign Tax Credit or ensuring that you properly exclude your foreign earned income.

Spanish Tax Strategy: Under the Beckham Law, your tax rate is capped, and you’re only taxed on your Spanish income. This can be a huge advantage for high earners. Our Spanish lawyers will ensure you meet the legal requirements to qualify for the Beckham Law and navigate the registration process.

Whether employed by a Spanish company or working in Spain as a contractor, our experts can help you take full advantage of this unique tax opportunity

Buying or Selling Property in the US or Spain

Real estate transactions can have serious tax implications in the US and Spain. Whether you’re buying or selling Property, there are key factors to consider:

US Tax Implications: If you sell Property in the US, you may be subject to capital gains tax. If you’re a resident of Spain, the US taxes you on your worldwide income, so any sale must be reported to the IRS. You may also qualify for a capital gains exclusion if the Property was your primary residence. Our Enrolled Agents can help you navigate the sale and ensure you’re using all available exemptions.

Spanish Property Taxes: When purchasing Property in Spain, you’ll encounter a range of taxes, including Property Transfer Tax (ITP), Value Added Tax (IVA), and Stamp Duty. Additionally, you will need to file Spanish tax returns on rental income, if applicable. Our Spanish lawyers can advise you on the best structure for your property investment, whether you’re purchasing a home, vacation property, or rental property.

With our team’s expertise, you can make informed decisions about your property investments, minimizing taxes and avoiding potential pitfalls.

Managing Investments and Pensions While Moving Countries

One of the most pressing concerns for American expats is what to do with their investments and pensions. Whether you’re drawing a US pension, contributing to a 401(k), or planning to retire in Spain, it’s crucial to understand how these assets will be taxed in both countries.

US Tax on Pensions: Pensions from US sources, such as Social Security, may be subject to US tax and potentially Spanish tax, depending on the specifics of your residency and income. We help ensure that you understand your eligibility for exclusions or credits in both countries.

Spanish Tax on Global Investments: Spain taxes its residents on worldwide income, which means any US-based investments (stocks, bonds, rental properties) are subject to Spanish taxation. However, Spain offers tax relief for foreign-source income, and particular investment accounts may have favorable tax treatment.

Our Enrolled Agents and Spanish lawyers can provide strategic advice to optimize your retirement plans, ensuring you’re maximizing the US and Spain’s tax advantages while complying with each country’s tax laws.

How We Can Help You Throughout the Year

While tax season can be stressful for expats, our services don’t stop after your returns are filed. We offer year-round advisory services to help you navigate:

Tax planning: We analyze your unique situation and recommend tax-efficient strategies for both the US and Spain.

Ongoing compliance: We ensure you stay compliant with both the IRS and the Spanish Tax Agency, avoiding penalties and interest.

Strategic advice: Whether it’s deciding between self-employment or employment, structuring your investments, or navigating complex cross-border tax issues, we provide guidance throughout the year.

FAQs Filing Tax Returns