Last Updated on March 18, 2026 by Bruno Bianchi
Question
I’m 30 and from the US. My plan to go back to Spain is through all savings, I’ve been able to work and save a healthy amount, I should have around $80,000 by the time I decide to start the process and move to Spain around February of 2025.
I have an IRA but that won’t be touched, I’m nowhere near retirement so I wouldn’t withdraw anything from that, I would just rely on my savings.
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Start the Moving to Spain Hub →My question is, are savings also taxed? Confused on what part of my funds can be taxed. Since I wouldn’t use anything from my IRA, that account also wouldn’t be taxed, is my understanding?
Answers
These are the answers of some Facebook group members:
“Based on my understanding, savings should not be taxed as you are not getting a distribution payout as you do with a pension, 401k, capital gains etc. Interested to hear from others in here on their experience or intel”
“Interest is taxed, or so I hear”
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Explore Cities →“Interest on savings above the personal allowance threshold is taxable, as it’s income.
If your worldwide wealth exceeds the allowance threshold for wealth tax, then you will be liable for Impuesto sobre el Patrimonio (Wealth tax), based on your total assets. As your assets may include savings, this would in effect be a tax on your actual savings (if they form part of that worldwide wealth)”
“Only the interest you gain from your savings is taxed”
“Probably not taxed. Bigger question is what do you do for year 2 and 3 when the money runs out? You have no income and cannot work in Spain. I’ve spent close to $15k just the first month buying pots, pans, beds beddings, tv, computers, getting an apartment security deposit electric, internet, cell phones. We are a family of three, so our costs are higher but you will need some start-up money. Maybe better on a student visa”
“Only interest on savings is taxed”
“Savings are not taxed”
“Only interest on savings unless savings passes 700k limit (wealth tax minimum treshold). Until they abolish the rule that taxes high wealth”
Conclusion
Using savings to move to Spain generally doesn’t incur taxes on the savings themselves, but interest earned may be taxable if it surpasses the personal allowance threshold. There’s also a potential wealth tax on worldwide assets, including savings, if it exceeds the set threshold.
It’s essential to be mindful of these tax implications while also considering the practical expenses involved in relocating. Contributors note that initial setup costs and the need for income sustainability in the following years should be carefully planned.
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