Americans in Spain

@madaris05

Spain has a tax agreement with the US, so that you do not pay taxes on your SS in Spain. In general any other income, anywhere in the world, you will pay tax on.

You will need the NIE in order to open a bank account. This is what I found online about Spain taxing funds in banks, I can not verify it's accuracy, take it for what it's worth:

    1.    Interest Income: Any interest earned on money in a Spanish bank account is considered savings income and is subject to capital gains tax. The rates for savings income in Spain are progressive, as of 2024:

    •    19% on income up to €6,000

    •    21% on income between €6,001 and €50,000

    •    23% on income between €50,001 and €200,000

    •    27% on income above €200,000

    2.    Wealth Tax: If the total value of your worldwide assets (including bank accounts) exceeds a certain threshold, you may be subject to Wealth Tax. For non-residents, this threshold is €700,000, while residents get a larger exemption. Wealth tax rates range from 0.2% to 3.5%, depending on the total value of assets.

    3.    Reporting Requirements: Residents of Spain are required to report all assets held outside Spain, including foreign bank accounts, if the total value exceeds €50,000. This is done via the Modelo 720 form. Non-compliance can result in heavy fines.

    4.    Tax Residency: If you are a tax resident in Spain (spending more than 183 days per year in the country), Spain will tax your global income, including money in both Spanish and foreign bank accounts. Non-residents, however, are taxed only on income generated in Spain.