I want to move to Spain from the US with my wife. How can I obtain residency being an EU citizen? What are the tax implications?

By
Bruno Bianchi
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Question

My wife and I plan to move to Spain from the US in 2023. We are both from the U.S. but I have EU Citizenship (Latvia), my wife does not.

However, it seems clear that she will be able to acquire a visa as my spouse that may be easier than going the NL route. I’m unclear on, however, is do we need to have an apartment in order to receive residency permits? or rather, do we need residency permits first in order to sign a lease?

I’m currently an independent contractor in the U.S. and I plan on continuing to do so in Spain. My wife has a full-time U.S. job that is remote. As an independent contractor, will filing taxes be similar to how it is in the U.S.? Once a year, file income and expenses, and pay taxes due accordingly? I know that you cannot be taxed by both the U.S. and Spain. What is the best practice for navigating this? I see that a digital nomad visa is in the works which has a very reasonable tax rate, but I don’t want to wait on that if it’s not definitely happening.

Answers

These are the answers of some Facebook group members:

“EU person becomes resident in Spain , US partner becomes resident on basis of partners residency . Compared to usual going the EU route is easy 🙂 but plenty of snags , biggest we found was getting apostiled certified copy of marriage from another country. Just arrive in Spain and do it all here – each area has Gestoria or Abagados who handle expats. Once in Spain for 183 days in calendar year taxes are generally paid to Spain and FTC claimed in US. Watch out for capital gains if selling property as if you sell early 2023 you don’t want to be tax resident until 2024 if you have a gain ! I cannot stress enough the highly privileged position you will be in as EU citizen. Note only enter and use your EU passport in Europe , if visiting US later enter/exit US on US passport but re enter EU on EU one. Good luck , DM if you need specifics or help.”

“Taxes: you will be taxed in both US and Spain once your became a tax resident in Spain – but that’s a fact question specific to each situation. normally staying 183 days in Spain triggers it. The double taxation treaty ensures you only pay the highest rate, not double. you first pay tax in your residence country, so Spain gets paid first. Any tax you paid in Spain you get as a tax credit in the US.
Also there is the financial accounts reporting (FBAR) which coincides with tax filing date in the US. It’s easy to do online, and can carry steep fines if you skip it.”

“Since you are an EU citizen, neither of you need a visa. You simply apply for residency once here in Spain. You will get residency first, then your wife will be granted residency based on your EU citizenship. You will need the following to apply for residency:

  1. Newly printed marriage certificate from county clerk with apostile and translated by official sworn Spanish translator
  2. Proof of economic means (also translated)
  3. Health insurance approved by Spain.

She will immediately be allowed to work in Spain and have access to all benefits like any other Spanish resident, unlike other visas (the non lucrative or student visa does not grant these benefits)

When it comes to being a private contractor/self employed it’s different than in the US. Here it’s called autónomo and is quite regulated, you must pay a monthly fee (300€+/-) that goes towards social security contributions, as well as file quarterly taxes. Some complain it’s expensive. You will file in both the US and Spain and since there’s a treaty you only pay the difference (Spain will probably have a higher rate).

Also once you start working in Spain (or becoming autónomo) you will both automatically qualify for the public healthcare which is excellent.

I am a Spanish resident, married to a Spanish citizen, and originally came on a student visa. I’ve never used a gestor or lawyer for any of my residency applications so it’s for sure doable if you’re comfortable with bureaucratic norms. All the processes and documents required are clearly outlines on the Spanish government websites.”

“You will need a fresh, apostilled and officially translated license marriage. “fresh” means that it was officially printed within the 90 days of when you apply for residency. Apostille is done by the US state that issued your marriage license. As folks indicated, definitely use a Gestor (who can usually also handle the translation), but other than that, it’s pretty simple.”

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