Hello all!
I'll be in Barcelona in a few months and I'm trying to sort out my tax situation.
I'm a US citizen, but I also have Italian citizenship (and passport).
Currently, I contract for a US company. If I move to Barcelona (to do work with the branch office there), but continue to be paid in the US in US dollars, will I have to report any tax information to Spain? I'll be able to live in Barcelona and get my NIE and residencia no problem due to my Italian citizenship so I don't technically need to let them know I'm working. I'm just wondering if I'll get in trouble moving money from my US bank account to my Spanish bank account to cover living expenses.
My US taxes are relatively low because I don't make much money (which is fine). If I were to go the thoroughly legal route and pay Spanish income taxes instead, the super high minimums would wipe me out, so it's not much of an option.
I've been talking with my accountant, but I wanted to get some ideas from those of you on the ground. Thanks in advance to anyone who can offer some insight.
Citizenship and taxes!
Hello Joseph,
(Most of this is from my response to another tax post question.)
The United States has a double tax treaty with Spain, but you will have responsibilities to notify both and pay one or the other. And believe it or not your former State government may come after you and freeze your bank accounts as well if you do not follow proper procedures.
I urge anyone planning a move to meet with their U.S. tax advisor before leaving. When you arrive in Spain, discuss your Spanish tax obligations with either your lawyer or tax consultant.
Bob
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