{"id":309,"date":"2023-11-24T13:46:06","date_gmt":"2023-11-24T13:46:06","guid":{"rendered":"http:\/\/www.minnesotathinktank.com\/?p=309"},"modified":"2023-11-24T13:46:06","modified_gmt":"2023-11-24T13:46:06","slug":"us-tax-advisor-in-spain-demystifies-american-taxation","status":"publish","type":"post","link":"http:\/\/www.minnesotathinktank.com\/us-tax-advisor-in-spain-demystifies-american-taxation\/","title":{"rendered":"US Tax Advisor in Spain Demystifies American Taxation"},"content":{"rendered":"<p>As an American expat living in Spain, you face many different tax requirements. Your situation is unique, and you need a US tax advisor who understands the differences between your home country and your new one. Whether you are a business owner, an investor, or simply a retiree, a US expat tax expert can help you navigate the complex Spanish tax system.<br \/>\n<iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/am36yDwgFZ4?si=YzYCnwmw7BXjyIbj\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Are you a US citizen or Green Card holder who lives in Spain? If so, you likely need to file US taxes annually. Generally, individuals who live abroad need to fill out Form 1040NR or Schedule C (if self-employed).<\/p>\n<p>In addition to US expat tax filings, most Americans in Spain\u00a0<strong><a href=\"https:\/\/htj.tax\/us-expat-tax-spain\/\">US tax advisor in Spain Derren Joseph<\/a><\/strong> will have to file a Spanish tax return each year. This is because the United States and Spain have a tax treaty in place, which affects certain income items. Having a US expat tax consultant in Spain can help you determine which tax regime is best for your situation, and how to optimize your deductions and credits.<\/p>\n<p>A US tax advisor in Spain can also help you avoid double-taxation. This is possible because of the tax treaty between the two countries, as well as certain treaty tie-breaker procedures. For example, if you are considered a resident of the US but also a resident of Spain, it may be possible to use the Beckham Law to qualify for treatment as a non-resident of both countries. This can save you substantial taxes.<\/p>\n<p>Additionally, US expats in Spain can also benefit from a variety of other Spanish tax breaks, such as exemptions for foreign pensions and investments, the foreign earned income exclusion, and a reduced wealth tax. This is in addition to the lower rate of personal income tax and social security contributions that residents pay.<\/p>\n<p>Finally, US expats in Spain can take advantage of the low value-added tax, which is 10% on some goods and services. For instance, this tax is applied to the purchase of new and used vehicles, some food products, domestic travel by road or rail, some medical goods, and more.<\/p>\n<p>As a general rule, anyone who has lived in Spain for 183 days or more per year is considered a resident of the country for tax purposes. This includes individuals who receive an employment contract, own a business in the country, or have a residence permit. Non-residents must still file a tax return and report their income in Spain, but it is much less burdensome than if they were residents.<\/p>\n<p>In addition, non-residents can also take advantage of the wealth tax in Spain, which is based on the value of your assets. However, unlike the United States, there is no spousal or lifetime gift allowance in the country, so estate planning is particularly important for non-residents in Spain. If you are a non-resident, it is especially crucial to talk with an experienced US expat tax advisor in Spain to make sure that your property and financial affairs are properly planned.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As an American expat living in Spain, you face many different tax requirements. Your situation is unique, and you need a US tax advisor who understands the differences between your home country and your new one. Whether you are a business owner, an investor, or simply a retiree, a US expat tax expert can help [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/posts\/309"}],"collection":[{"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/comments?post=309"}],"version-history":[{"count":1,"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/posts\/309\/revisions"}],"predecessor-version":[{"id":310,"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/posts\/309\/revisions\/310"}],"wp:attachment":[{"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/media?parent=309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/categories?post=309"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.minnesotathinktank.com\/wp-json\/wp\/v2\/tags?post=309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}