Question
I am curious about taxes in Spain under a Spain non lucrative visa. I spoke to my accountant the other day, and he said that the taxes are higher in Spain, so I would be paying more.
What are people’s experiences with them? Are they THAT much higher? Are they higher but not unreasonable and acceptable because the quality of life is better? I am from the U.S.
Answers
These are the answers of Spainguru’s Facebook group members:
“Taxes are significantly higher in Spain. Because you don’t make quarterly payments, when you get your annual bill, it can be shocking! That said, with the much lower cost of living, excellent inexpensive healthcare, and almost nonexistent property taxes, for most people, it’s a lot cheaper to live in Spain than in the U.S.
The bottom line for me is that unlike in the U.S., I feel like I’m getting my money’s worth here. Everyone’s tax situation is different. You should get professional tax advice, both in Spain and in your home state if you’re considering moving here, as there can be state tax consequences as well.”
“Yes, taxes are higher. The difference is that food is lower, housing is less, healthcare and medication are less as well. You have to look at the big picture vs. just looking at taxes. Plus, quality of life, less stress.”
“I did the math on our taxes US vs. Spain just last month. It was an increase of 4%, but our cost of living is a decrease of 24.5%, and that doesn’t include healthcare, which cost us on average $12K per year in the U.S. versus $2,300 in Spain on private insurance.
IMO, the higher taxes are paying for superior schools, healthcare, and even daycare! We can put our son in a private school in Spain for $6,500 a year, and that includes everything. We would pay $27,600 a year for daycare in the U.S.”
“If you make between $60K and $300K, it might be 6% more, give or take a lot. Really it’s super complicated, and that’s why you pay accountants real money to answer these questions.”
“Yes, taxes are higher, but you can actually live a high-quality life for €40K annually or less in Spain. I could live without travel for under €20K.”
“It’s a trade-off, slightly higher tax versus lower living costs and a much better standard of life. You choose… I did and am loving Spain.”
“My experience is that if I combine how much more I pay in taxes with how much less I pay for health-related stuff, it roughly balances out even.”
“They are higher, and don’t forget the wealth tax as well to understand the annual cost.”
“This article is about taxes for Americans in Spain https://spainguru.es/2024/04/05/taxes-for-americans-living-in-spain/
Here are my recommended top tax experts who specialize in Spanish and US filings. Check them out here: https://spainguru.es/services-for-spanish-visas/ “
Conclusion
Many expats agree that taxes in Spain are generally higher than in the U.S., particularly for middle-to-higher income earners. However, the consensus also highlights that the overall cost of living in Spain is significantly lower, with savings on essential expenses like healthcare, housing, and education often balancing out the tax differences.
The quality of life, including access to affordable healthcare and a less stressful environment, is seen as a major benefit that makes paying higher taxes worthwhile for many.
When considering a move under the Spain Non Lucrative Visa, it’s advisable to consult with professionals experienced in both U.S. and Spanish tax systems to get a clearer picture of your potential financial situation.
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