US Expats in Spain: Complete Money & Tax Guide

Last reviewed: 17 May 2026

Spain is a growing destination for Americans, particularly under the post-2023 Digital Nomad Visa, which paired with the Beckham Law tax regime creates one of Europe’s most attractive packages for remote workers. The complications, as always with US citizens, are FATCA, FBAR and the PFIC rules that make most non-US investment products toxic. The Spanish Golden Visa closed to new applicants on 3 April 2025, removing one route but leaving several others wide open.

Visas & Residency

Three routes carry the bulk of American moves:

• Digital Nomad Visa (DNV). Launched 2023, the standout route for remote workers and contractors with non-Spanish income above roughly €2,520 per month. DNV holders can opt into the Beckham Law regime, capping Spanish-source income tax at 24% for six years.
• Non-Lucrative Visa (NLV). For retirees and others with passive income above €2,400+ per month (plus 25% per dependant). No work permitted in Spain.
• Investor Visa (replacing the closed Golden Visa). Routes via business creation or large bank deposits remain available but are less commonly used by Americans.

Permanent residency comes after five years; Spanish citizenship after ten.

Spain Tax for US Expats

You remain subject to US tax on worldwide income for life as a US citizen. Moving to Spain does not change that. The US/Spain treaty (and the Foreign Tax Credit) prevent double taxation in most cases, but you will file annually in both jurisdictions.

Spanish residents are taxed on worldwide income at rates from 19% up to 47%+ (depending on region). The Beckham Law is the standout planning tool for US movers who qualify (not Spanish-resident in the prior five years, working under a Spanish contract or covered by the DNV): 24% flat rate on Spanish-source employment income up to €600,000, 47% above, for six years. The regime now extends to spouses and children under the 2023 reforms.

The Foreign Earned Income Exclusion shelters up to $130,000+ of earned income from US tax. For Beckham Law years the FTC arithmetic favours running the FEIE alongside; outside Beckham, the standard FTC against high Spanish rates is generally more efficient. The right answer depends on your numbers and warrants a dual-licensed review.

401(k), IRA & Investment Strategy

The hard rules for Americans abroad:

• Do not buy Spanish or EU mutual funds, ETFs or insurance products. They are PFICs under US tax law, triggering Form 8621 and effective rates above 50%. See our PFIC explainer.
• Keep your US retirement accounts where they are. 401(k)s and IRAs remain tax-deferred under the US/Spain treaty. The treaty’s pension article means distributions are taxable in Spain for residents, with the US tax creditable against Spanish tax (the asymmetry of which way the FTC flows matters).
• Beware Spanish-compliant bonds for Americans. These work brilliantly for British expats but are usually PFICs from the US perspective. The Spanish tax advantage is wiped out by the US penalty. Use a US-compatible structure instead.
• Roth IRA treatment is uncertain. The treaty doesn’t explicitly cover Roths, so Spain may tax distributions despite their US tax-free status. Review before converting.

See our 401(k) management abroad pieces for deeper analysis.

FATCA, FBAR, Modelo 720 & Reporting

You file in three jurisdictions’ worth of forms:

• FBAR (FinCEN 114). Required if foreign accounts aggregate to more than $10,000 at any point in the year.
• Form 8938 (FATCA). Filed with the 1040, higher thresholds ($200,000+ for expats filing single).
• Form 8621. One per PFIC, which you avoid by avoiding PFICs.
• Modelo 720. Spanish annual disclosure of foreign assets above €50,000 in each of three categories. Penalties were softened in 2022 but the form remains mandatory.

Spanish banks know FATCA: expect a W-9 request when opening any account, and your balances are reported to the IRS annually under the US/Spain IGA.

Healthcare

Spanish residents access the SNS once registered. Americans without an S1 (which only UK state pensioners receive) typically pay into the Convenio Especial (around €60 to €160 per month) or carry private insurance. Most opt for private cover to access English-speaking specialists and shorter waits, typically €50 to €150 per month for full cover, far below US premiums. Medicare does not cover care outside the US.

Estate & Inheritance Planning

You remain in scope of US federal estate tax on your worldwide estate (the $13.99m 2025 exemption is scheduled to fall to roughly half that in 2026 absent extension). Spain’s Inheritance and Gift Tax (ISD) is regional: Madrid and Andalucia apply close to zero between direct family, Catalonia and others apply meaningful rates.

If Spanish forced-heirship rules would conflict with your US will, EU Regulation 650/2012 allows you to elect US-state law to govern your succession. Document this before, not after, you move.

Speak to an Adviser

US-Spain planning requires getting Beckham Law eligibility, FBAR/FATCA logistics, PFIC avoidance, and treaty positioning all right at once. Book a free consultation with an adviser who handles American expat moves to Spain regularly.