Taxes for US citizens?

So to answer part of my questions, as per http://spainlawyer.com/guia-legal/los-i … 0200000000

* Spain has a double taxation treaty with the US so it looks like I'm only going to have to pay the difference?
* The income tax rate is 24%?
* Yes, I still have to pay taxes even though i'll be employed for a US company

The only pending question is what other significant taxes are there? (This is sort of a cost of living question).

Spain, like the US requires you to declare world wide earnings. If your tax home is Spain, then you pay according to your earnings. I am married to a Spanish national and we file separately. I earn about $35,000 per year. In Spain I pay around 19% tax and have a Spanish accountant do my taxes. There is a graduated scale 19% to 45% depending upon earnings. Since the US and Spain have a tax treaty, I complete the 1040 to compute the taxes owed in the US. Since, for me, the taxes owed in the US is less than the taxes paid in Spain, my tax debt in the US is zero and I get a full refund. In the case where US taxes are greater than those paid in your country of residence, you would pay the difference to the US. Being married to a Spaniard and having worked for the Spanish government, I am on the Spanish national hgealth care plan. That along with other benefits make it well worth it to me to pay the higher rax rate in Spain.

Other taxes, IVA (value added tax) 4% to 21% depending on necessity of item is added into the cost when you pay. Property taxes where I live are much lower than for a property of comparable value in the US, maybe 1/4.

claxnes wrote:

Spain, like the US requires you to declare world wide earnings. If your tax home is Spain, then you pay according to your earnings. I am married to a Spanish national and we file separately. I earn about $35,000 per year. In Spain I pay around 19% tax and have a Spanish accountant do my taxes. There is a graduated scale 19% to 45% depending upon earnings. Since the US and Spain have a tax treaty, I complete the 1040 to compute the taxes owed in the US. Since, for me, the taxes owed in the US is less than the taxes paid in Spain, my tax debt in the US is zero and I get a full refund. In the case where US taxes are greater than those paid in your country of residence, you would pay the difference to the US. Being married to a Spaniard and having worked for the Spanish government, I am on the Spanish national hgealth care plan. That along with other benefits make it well worth it to me to pay the higher rax rate in Spain.

> There is a graduated scale 19% to 45% depending upon earnings.

What??!!!! Are you saying that I can expect to give away up to 45% of my earnings in taxes? Are you sure? as per the link I mentioned in my reply, it just mentioned a 24% income tax rate.

happierexpat wrote:

claxnes wrote:

Spain, like the US requires you to declare world wide earnings. If your tax home is Spain, then you pay according to your earnings. I am married to a Spanish national and we file separately. I earn about $35,000 per year. In Spain I pay around 19% tax and have a Spanish accountant do my taxes. There is a graduated scale 19% to 45% depending upon earnings. Since the US and Spain have a tax treaty, I complete the 1040 to compute the taxes owed in the US. Since, for me, the taxes owed in the US is less than the taxes paid in Spain, my tax debt in the US is zero and I get a full refund. In the case where US taxes are greater than those paid in your country of residence, you would pay the difference to the US. Being married to a Spaniard and having worked for the Spanish government, I am on the Spanish national hgealth care plan. That along with other benefits make it well worth it to me to pay the higher rax rate in Spain.

> There is a graduated scale 19% to 45% depending upon earnings.

What??!!!! Are you saying that I can expect to give away up to 45% of my earnings in taxes? Are you sure? as per the link I mentioned in my reply, it just mentioned a 24% income tax rate.

Yes, depending on your earnings, the more you earn, the higher tax bracket applies to you, the same in most European countries. (UK, France, Austria etc....)

Have a look at Tax rates in Europe.

Tax in Europe is insane 20% corporation tax 20% VAT 40% income tax in UK 11% national insurance I keep 9% of what I make. If I paid into a pension I would be paying to work. And to top it off the socialists want to take more tax. Don't know how.

edpsych wrote:

Tax in Europe is insane 20% corporation tax 20% VAT 40% income tax in UK 11% national insurance I keep 9% of what I make. If I paid into a pension I would be paying to work. And to top it off the socialists want to take more tax. Don't know how.

Tax your blood if they could

Well , ok, it is as SimCity and EdPsych say. I advise all Trump-voting Americans to stay in the US and keep voting Trump.

If you're really only taking home 9% of what you/your company earn, which seems unlikely given that for one you are surely also charging VAT on the end product or services you sell and not only on what you buy in, you probably need a new accountant.

Given that you presumably own the company in question, would you not be paying some of your income in dividends instead of straight income, thus paying lower tax and avoiding national insurance on that amount?

It should also be noted that your tax is paying towards more public services than it would be in the US.

Of course I take home more more than 9% but only because I have a very good accountant and because we restrict how much we take out of the company. The services provided with my tax are generally rubbish and we inevitably end up with private services. Example after 6 very happy and challenging years in private education my daughter secured a place in a highly selective state 6th form. We have had emails about children with knives and thieves penetrating the security and her iPhone has been stolen and she is bored by the lack of bit to the teaching.

Of course I take home more more than 9% but only because I have a very good accountant and because we restrict how much we take out of the company.


As a former UK government employee on a pension, like many I have to pay my fair share.  Guess so that those who can get around it can pay less.

Enjoy my taxes !

Fair as in 91% of the money I generate goes in tax.  I think it's obscene.  In fact, we have cut back our work by 25%  with a consequent effect on profitability and tax liability.  I am enjoying the time off very much, I expect the two government employees that have been made redundant as a result of reduced tax take are not so happy. If you want to know why UK productivity is so low look no further. As to fair share £107,000 in tax last year.