Will Spain tax my US rental properties?

Question about Spain tax on rental properties in the US

If my income is from rental properties (US) will Spain tax those foreign properties?


These are the answers of some Facebook group members:

”Double taxation will probably mean that as long as u pay taxes in the US for those rentals you might not have to pay them here, or only pay if here the tax is higher, is a delicate subject and needs professional advise , because u need to declare them also in the Model 720 if they are over 50k( which prob they are..)”

”Spain taxes all worldwide income and asset values (depending on assets vales and on where you live in Spain) so yes, it’s possible that you could have some tax to pay to Spain, even after paying tax to the IRS. There’s a double tax treaty with Spain and the US so that’s a positive but Spain’s tax rates are higher probably. You should get some advice from a tax professional experienced in both Spanish and American taxes. You will get some recommendations from the Americans in Spain Facebook page”

”If a resident of Spain, you need to declare your worldwide income here. Any taxes paid in the US will be deducted. If Spain would tax more then you pay the difference here. Note that when a resident in Spain, Spanish taxation rules also apply e.g. when selling or inheriting a property abroad. E.g. you may get taxed on any profit you made on the sale relative to when you bought or received it (plusvalía). Definitely worth getting professional advice for”

”I was told that the double tax treaty does not apply to income from foreign property by the UK. ( US might be a different treaty) But I just pay the difference in the Spanish tax. They seem to pluck out a number from thin air every year as I can not prove the tax paid in the Uk for a Spanish accounting year”

”Fortunately, in Spain, you only pay tax on 40% of the profit if the property is let on a long-term basis rather than a holiday let”


In conclusion, according to Spainguru Facebook group members, if you earn rental income from properties in the US and are a resident in Spain, you’ll likely need to pay Spain tax on those properties in Spain as well. Although there’s a double tax treaty between the US and Spain, you may still owe taxes in Spain after paying in the US, depending on the specific tax rates in both countries. Seeking advice from a tax professional experienced in both Spanish and American taxes is advisable to navigate the complexities of cross-border taxation and ensure compliance.