Spain expat taxes: Guide for US citizens

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise US Inc. or its affiliates, and it is not intended as a substitute for obtaining business advice from a Certified Public Accountant (CPA) or tax lawyer

Many US expats move to Spain for its warm climate, rich culture, and a slower pace of life. You may also be moving there for work, to be together with your family, or as a digital nomad.

You're in for an exciting adventure, but living in Spain likely means paying taxes. It can also impact your US tax obligations. It's essential to understand Spanish tax residency rules, how Spain taxes American expats, and the steps you can take to minimize double taxation.

Here's everything you need to know about Spain's taxes for expats, whether you're only staying for a few months or living there full-time.

We'll also introduce the Wise account, which allows you to send, spend, and receive your money across the globe in over 40 currencies – all at the fair mid-market rate.

Learn more 🔎

Table of contents
How much tax do US expats pay in Spain? How to file taxes in Spain as a US expat: step by step Do I have to pay US taxes if I live in Spain? Need to pay your US taxes as an expat? Expecting a refund from the IRS, but you live abroad? Meet Wise

How much tax do US expats pay in Spain?

Taxes in Spain for expats largely depend on your residency status and where your income comes from. The Spanish tax system treats residents and non-residents differently, and each group faces different rates and obligations.

The income tax is the backbone of Spain's expat taxes. Non-residents pay a flat 24% tax rate on Spanish-source income (or 19% if you're from an EU or EEA country).¹ Spanish tax residents face progressive rates ranging from 19% to 47% on their worldwide income.²

However, depending on your situation, you'll also need to consider property taxes, social security contributions, capital gains taxes, estate and gift taxes, VAT (sales tax) on purchases, and, for high-net-worth individuals, a wealth tax.

It's also important to remember that the US taxes its citizens on worldwide income regardless of where they live. However, the US-Spain tax treaty, along with deductions and credits available to American expats, can reduce or eliminate your US tax burden.

Income tax for expats living in Spain

Spain's tax system draws a clear line between tax residents and non-residents. There are different rates and rules for each group. You can live in Spain for part of the year without becoming a resident for tax purposes.

Spain considers you a tax resident if you meet any of these conditions:³
You live in Spain for more than half the year (183+ days) You have a business or other economic interests in Spain Your spouse or minor children are Spanish tax residents

If you don't meet any of these qualifications, Spain treats you as a non-resident for tax purposes. So, if you live in Spain for less than 6 months out of the year, you don't have to pay resident taxes.

Non-residents pay tax only on income earned within Spain. Here's a breakdown:

Your citizenship/residency	Tax rate¹
EU/EEA	19% flat rate
All other residencies (including the US)	24% flat rate

If you spend enough time in Spain to be considered a tax resident, you'll pay progressive rates on your worldwide income:

Income range	Tax rate²
0 to 12,450 EUR	19%
12,450 to 20,199 EUR	24%
20,200 to 35,199 EUR	30%
35,200 to 59,999 EUR	37%
60,000 to 299,999 EUR	45%
Over 300,000 EUR	47%

These income ranges can adjust with inflation, and Spain's autonomous communities can also change these base rates for their residents, so your actual tax bill may look slightly different depending on where you live.

The Beckham Law

The Beckham Law (Ley 35/2006) is a special tax regime that some expats can qualify for. It allows you to pay a flat 24% income tax rate for your first 6 years of Spanish residency, regardless of how much you earn.⁴

It earned its nickname after David Beckham, who was one of the first people to benefit from it. To be eligible, you'll need to prove that you're relocating to Spain for a job with a Spanish employer, along with other requirements.

Deductions & allowances for US expats

You may be able to reduce your taxable income with deductions and allowances. These include:

• Personal allowances: A basic personal allowance that starts at 5,550 EUR and increases if you're over 65 or have a disability⁵

• Family allowances: You can claim allowances for dependent children and elderly parents or grandparents who live with you — the amounts depend on the number of children and their ages, with higher allowances for each additional child

• Other deductions: You can deduct social security contributions, pension payments, home purchase and renovation costs for your primary residence, and charitable donations

It's a good idea to consult with a Spanish tax professional to determine what the current allowances are and which of them apply to your situation.

Other taxes in Spain

In addition to the income tax, you may have to pay a few other Spanish taxes as an expat.

Capital gains tax

When you sell investments like stocks or property for more than you paid, you owe tax on the profit.

Non-residents pay a simple 19% rate on all capital gains.³

Spanish tax residents face graduated rates that increase with the size of their gains:

Capital gains amount	Tax rate³
1 to 6,000 EUR	19%
6,000 to 50,000 EUR	21%
Over 50,000 EUR	23%

Estate and gift tax

Spain taxes money and property you inherit or receive as gifts.

If you're a Spanish tax resident, this applies to all assets anywhere in the world. Non-residents only pay on Spanish assets. Tax rates range from 7.65% to 34%.³

Social security contributions

Spain runs a social security system similar to the US. Employees contribute 6.35% of their earnings, and employers pay 29.9%.³

These contributions fund healthcare, unemployment benefits, and pensions.

Property taxes

When you buy property, expect to pay 10% to 12% of the purchase price in taxes and fees. Annual property taxes typically run 0.4% to 1.1% of your property's value, but non-residents may need to pay more.⁵

When you sell, you'll pay 5% to 15% of the sale price depending on your situation.⁵

Value-added tax (IVA)

Spain's version of the sales tax is called IVA. Most goods and services carry a 21% rate, but some items get reduced rates of 10% (like hotels and restaurants) or 4% (basic foods and newspapers).⁵

This tax is usually already included in the prices you see in the stores or restaurants.

Wealth tax

If your worldwide net worth exceeds 2 million EUR, you may owe annual wealth tax that ranges from 0.2% to 3.5% of your assets.³

How to file taxes in Spain as a US expat: step by step

---

Determine your residency and requirements

Your first step is figuring out whether Spain considers you a tax resident. Not everyone who spends time in Spain is considered a resident for tax purposes.

Typically, you become a tax resident if you spend more than 183 days in a calendar year in Spain.³ In other words, you need to live there for more than 6 months out of a year.

Filing requirements depend on your status:

Tax residency status	Filing requirements³
Tax residents	You must file a Spanish tax return if your worldwide income hits certain minimums. The main trigger is earning more than 22,000 EUR from employment, but lower thresholds apply for investment income, rental income, or capital gains. You'll also need to report all of your foreign assets worth over 50,000 EUR (property, savings, etc.).
Non-residents	You only file for Spanish-source income. This means rental income from your Spanish property, wages from Spanish employers, or profits from selling Spanish assets. If you don't earn any money in Spain, you typically don't need to file.

Get your Spanish tax number (NIE)

Before you can file taxes, you need a Número de Identificación de Extranjero (NIE). This is your Spanish tax ID number. You can typically apply for an NIE at Spanish consulates in the US or at the Spanish Tax Agency.

Gather your documents

You'll need income statements from all sources, bank statements, investment records, and documentation of any deductible expenses.

These documents will also be helpful when you file your US taxes on foreign income.

File your tax return and make your payment

Spanish residents use Form 100 (Modelo 100) for their annual income tax declaration.⁶

Non-residents have different forms: Modelo 149 to request permission to file, then Modelo 150 to actually submit the return.⁶

Property owners who are non-residents typically use Modelo 210.⁶

You can file online through the Spanish tax authority's website, but you'll need a digital certificate for electronic filing. Alternatively, visit a local tax office or certain Spanish banks if you're an account holder there.

💡 Spain follows a calendar tax year from January to December. You must file your return between April and June of the following year, with the deadline usually falling in late June. The exact date changes every year.

Do I have to pay US taxes if I live in Spain?

Yes, but there are ways to minimize how much you pay in US taxes.

Moving to Spain doesn't eliminate your US tax obligations because the US requires all citizens to file annual tax returns and pay taxes on their global income, regardless of where they live. This means you could potentially owe taxes to both countries on the same income (known as "double taxation").

However, the US-Spain tax treaty helps prevent the worst cases of double taxation. The treaty includes provisions that determine which country has the primary right to tax specific types of income, reducing conflicts between the two tax systems.

The IRS also offers several ways for American expats to minimize their tax burden:

• Foreign Earned Income Exclusion (FEIE)
• Foreign Tax Credit
• Foreign Housing Exclusion

These benefits can reduce or even eliminate your US tax liability, especially if you're already paying substantial taxes in Spain.

💡 Learn more about paying US taxes as an expat in our full guide.

Does Spain tax US social security benefits?

The US and Spain have a totalization agreement that prevents you from paying social security taxes to both countries on the same income.

If you're working in Spain and paying into the Spanish social security system, you typically won't owe US social security taxes on those same wages.

Similarly, if you're receiving US social security benefits while living in Spain, the income may be exempt from Spanish taxes depending on your specific situation and the treaty provisions that apply.

Need to pay your US taxes as an expat? Expecting a refund from the IRS, but you live abroad? Meet Wise

Paying for your US taxes or receiving a tax refund can be tricky — the payment options are often slow and costly, and this doesn’t get better when you’re not in the country and/or you manage different currencies.

Whether you’re a US expat, a resident alien, or you have a foreign business, Wise can be an excellent option. With a Wise account, you can either pay your taxes from abroad or receive your tax refund easily. And if you manage more than one currency, you’ll save a lot on exchange rate markups and conversion fees.

When you fill out your tax forms, use your Wise USD Account and routing number.

🎯 You can find them under “Account Details.” This will let you:
Use direct debit to pay your taxes straight from your Wise account, avoiding the fees from other payment methods offered by the IRS Set up a direct deposit, the fastest way to receive your tax refund, to your Wise USD account details

Wise has no subscription fees or minimum balance requirements, and you can set up an account in minutes.⁷

You can send, receive, hold, and spend your money in multiple currencies, always with the real exchange rate, and with just a small and transparent fee.⁸

Get a Wise Account
in minutes 🚀

---

As a US expat in Spain, you'll have to navigate tax obligations in both countries. However, various deductions, allowances, and the US-Spain tax treaty can help minimize double taxation.

Your main Spanish tax burden will be the income tax. How much you have to pay depends on whether you're considered a resident or a non-resident for tax purposes. Most of the time, non-residents pay less.

To pay your US or Spanish taxes at the fair mid-market exchange rate, check out Wise.

Sources

1. Agencia Tributaria - Types of taxation in the IRNR without permanent establishment
2. La Moncloa - 2024 Income Tax Return: What is personal income tax and when should I file it?
3. Greenback Expat Tax Services - What Americans living in Spain need to know about expat taxes
4. Get Golden Visa - Beckham Law Spain
5. Bright!Tax - Taxes in Spain
6. Expatica - How to file income tax in Spain in 2025
7. Eligibility claim is subject to verification of customers identity
8. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Sources checked 06/05/2025