U.S. Citizen Living in Spain - Taxes

Hello jokofi,

That's is a very interesting question and I hope that other forumers will contribute on this taxation issue soon. I will suggest you to consult this article to clear some of your doubts.

As per the article, it claims that if your pension is being deposited on a Spanish Bank then you are eligible for Income tax. Hope other members will bring their input too!

And I agree with you, it becomes really confusing indeed the more you read about this issue.

Regards

Thank you, Yud, for the information.  I found out that the U.S. has an agreement with Spain, so that there will be no double taxation for us.  Also, since our money will NOT be deposited in a Spanish bank but in our bank in the U.S., we will continue to pay taxes in the U.S.  There might be, however, additional taxes to pay in Spain, but time will tell.

Yep, I confirm that the United States has the double tax treaty with Spain. You can read more from this article!

Regards

Hello Ron,

Thank you for your post.  I read your blog and appreciate all the information you have put together.  My husband and I are planning on leaving the end of this year for Valencia.  We have not started the process of applying for the visa, but will as soon as we get back home from Ghana the end of July.  Sounds like the process will take quite a while.

I will keep in touch and look forward to updates of the progress of this daunting task of getting a visa to live in Spain.

Thanks.

Joanna

Hi everyone.

We'll be heading to Valencia in June '12. Thanks for all the valuable information. Let's meet up there too.

BTW, I chose Spain after testing Ecuador. My experience was so poor that I started my first blog to warn others about traveling to Latin American. I wish my friend had warned me; I guess he figured I'd get by the thieves. Anyway, if you're interested, here's my story: http://ecuador2010mayjune.blogspot.com/ … 10-us.html

Thanks, Ron. We'll take a look.

We too went to SA first. We tried Argentina (loved it) and then Uruguay (loved it even more) but then last summer we took a long trip to EU and fell in love with Spain. Plus I'm a history fanatic and Europe has that aced. See you in Spain. : )

Hello, Ron.

Thanks for the link to the blog on your experiences in Ecuador.  I have some friends who also moved to S. America but returned; said it was the biggest mistake they made.  From everyone I have talked to on forums, blogs, and friends of friends -- I haven't heard anything negative yet about moving to Spain. 

When do you anticipate moving?  Sounds like quite a drawn-out ordeal to get your Visa.  I hope it comes through soon for you!

Hello all,

The commenters have provided some good info especially that the tax issue is confusing.  As mentioned, the United States has a double tax treaty with Spain.  That being said, things may not be as simple for you as they seem.  You may still receive threatening letters on the issue of taxes from the Spanish Government.  And do not forget your U.S. obligations.  How would like all your stateside bank assets frozen and have no access to your money even if you have been paying your Federal taxes properly?  Both of the above actions can happen.

I would urge anyone planning a move to meet with your U.S. tax advisor before leaving.  When you arrive in Spain, discuss your Spanish tax obligations with either your lawyer or tax consultant.

Bob