Spain Taxes for US Expats (2026)
Short answer: you'll always file with the IRS, but rarely pay double — the FEIE ($132,900 in 2026), the foreign tax credit and the US–Spain treaty see to that. Once you pass 183 days you're a Spanish tax resident on worldwide income (IRPF up to ~47%). If you arrive as an employee, the Beckham Law caps Spanish work income at a flat 24%. General information, not tax advice.
Do Americans pay tax twice in Spain?
You file twice, rarely pay twice. The US taxes by citizenship, so you keep filing a US return. The Foreign Earned Income Exclusion — up to $132,900 of earned income in 2026 (IRS) — and the Foreign Tax Credit (a dollar-for-dollar credit for Spanish IRPF, often the better tool given Spain's high rates) usually erase the US bill. The US–Spain treaty (2013 protocol in force since November 2019) prevents true double taxation, though its saving clause keeps US citizens taxable. A US–Spain totalization agreement (since 1988) avoids double Social Security contributions.
When are you a Spanish tax resident?
You're resident if you spend 183+ days in Spain in a calendar year, or your main economic interests are there. Residents are taxed on worldwide income via IRPF, a progressive scale: 19% to €12,450, rising to 45% at €300,000 and 47% above at the state level. Regions set their own half of the scale, so top marginal rates effectively range from ~45% to over 50% depending on where you live.
What is the Beckham Law?
Spain's impatriate regime taxes Spanish employment income at a flat 24% up to €600,000 (47% above) for the arrival year plus five, and generally doesn't tax foreign income — a big win versus standard worldwide taxation.
- Who qualifies: employees and posted workers — and, since the 2023 Startup Law, Digital Nomad Visa holders employed by a non-Spanish company.
- Who doesn't: ordinary freelancers/self-employed, and directors owning >25% of a company.
- Deadline: opt in within 6 months of registering with Spanish social security — miss it and it's lost.
Does Spain have a wealth tax?
Yes — two layers. The regional Patrimonio wealth tax applies above roughly a €700,000 allowance (plus a €300,000 main-home exemption) at 0.2%–3.5% — but several regions, including Madrid and Andalusia, grant 100% relief, so residents there pay none. A national solidarity tax on large fortunes (ISGF) then applies above €3 million at 1.7%–3.5% (regional wealth tax already paid is credited). These figures move — confirm the current year with a Spanish adviser.
What is Modelo 720?
An annual foreign-asset report. If your overseas accounts, securities or property in any one category exceed €50,000, you must file Modelo 720. After the 2022 EU Court of Justice ruling struck down the old confiscatory penalties, the regime is now standard: about €20 per data item, minimum €300, maximum €20,000. It's a reporting duty, not a tax — but don't skip it.
US reporting you still owe
| Form | When required |
|---|---|
| FBAR (FinCEN 114) | Foreign accounts together exceed $10,000 at any point in the year |
| Form 8938 (FATCA) | Foreign assets over $200k (single, abroad) at year-end / $300k anytime; $400k / $600k if filing jointly |
FAQ
Do Americans pay tax twice in Spain?
You file with both, but the FEIE ($132,900), foreign tax credit and treaty usually prevent paying twice.
What's the Beckham Law rate?
24% flat on Spanish work income up to €600,000 for six years, foreign income mostly untaxed; employees and DNV holders qualify, not ordinary freelancers.
Does Spain tax wealth?
Yes — regional Patrimonio (0.2–3.5% above ~€700k, but 100% relief in Madrid/Andalusia) plus national ISGF above €3M.
What is Modelo 720?
A foreign-asset declaration required when any category exceeds €50,000; penalties now ~€20/item (€300–€20,000).
Related guides
Sources
- IRS — FEIE · US–Spain treaty
- AEAT (Spanish Tax Agency) · IRPF, residency, Modelo 720; brackets/wealth-tax confirm via BOE