Question
Taxes in Spain: Looking for comments on the following tax scenario… We speak Spanish, and local Spanish tax preparers are trying to convince us that there is no need to coordinate between U.S. and Spanish tax professionals.
Just have someone in the U.S. (such as our old tax preparer) do the IRS filing and show to Spanish counterparts what you paid. Is it really that simple? Isn’t it better to have two professionals collaborating?
I have also heard we should first file in Spain where we are tax residents. In addition, I also have some minor autónomo income here, but we are basically talking about pension income and no major property. Any opinions?
Answers
These are the answers of Spainguru’s Facebook group members:
“There’s no need to coordinate. You do your taxes in Spain first and then give the information to your US tax preparer. You get an automatic two month extension on your US taxes if you live overseas, and you can file an extension through October if you need to.”
“You get an automatic two-month extension with no need to apply.”
“Yes, the two months is automatic.”
“A form is required if you need time after June 15 until October. Another request is required beyond October, but I have not done that one so can’t speak to it. The October one is super easy.”
“Pay Spain first! Then you can deduct what you paid from your USA taxes. Yes, the USA has an automatic 2-month extension, but only to file. You still have to pay any tax by April 15th.
Spain begins to accept tax returns on April 2nd. My USA tax advisor has all my tax information ready to go. Once I file in Spain, I’ll immediately send it to her. Spanish taxes are higher, by the way.”
“Americans overseas get an extension. Speak to your US CPA.”
“Yes, USA taxes (money) are due April 15th. The 2-month extension is for the filing of taxes. It’s frustrating because how does one know how much tax they will owe in the States? Taxes are done with software, so I gave both my Spanish and USA tax advisors all my information.
I will file the Spanish tax on April 2nd. All my USA advisor needs is proof of money paid in Spain (scanned Spanish return) so she can enter the amount on Form 1116 (Foreign Tax Credit). That will offset what I owe in the States. Spanish personal exemption is only 5,500€ while in the USA it’s $14,600.
Considering how high the tax is in Spain, and the high personal exemption in the USA I doubt I’ll owe anything. (Hopefully!)”
“Exactly! That’s what’s frustrating! Especially since the tax year is the same. That’s why it’s best to have everything ready so you can file immediately. There are USA expat tax websites where you can enter all information yourself and upload the Spanish tax paid at the last minute.
They have options for professional help in filing the USA taxes. The first step is to secure a Spanish tax advisor. You can search these on the web, too. Be forewarned! None of it is cheap. I look at it like this. It is so inexpensive to live in Spain vs the USA. The higher tax is a price I pay to live here. Everything else is crazy cheap!”
“Quote from the IRS website ‘Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return.'”
“My experience is best to pay Spanish taxes on your US (and Spanish income if applicable), using US revenue figures such as 1099 forms (note, by treaty, Spain and the US can share income figures). Use a competent Spanish tax preparer, file per the deadline date.
Then use a US tax preparer with specific expertise on doing tax returns for Americans and Resident Aliens abroad! Most US tax preparers do not have any expertise in this regard and they can get you into a lot of problems.
Many have no idea that per US-Spain Tax Treaty agreement, if you reside in Spain, then you pay taxes in Spain, and those taxes are an offset on your US IRS taxes, so no double taxation. There are exceptions and details, but in general, this approach avoids future problems.”
“That’s how we do it. I did everything with TurboTax last month for the US side and paid the US what we owed. TT includes form 2555 as well.”
“I don’t think there is any reason for collaboration. Taxes are filed in Spain. Then you give the return to your US tax person and they file your taxes with the reduction for the tax treaty. It should be that simple. No need to make it more complicated. If they collaborated, what would they discuss other than how to charge you more for spending more time on it?”
“Get someone else. Is it required by law to collaborate? No. Is it absolutely necessary to collaborate? No. Is it a good idea? Yes. Everybody’s situation is different. For most, you file and pay in Spain and then file and pay in the US, but you claim credits for taxes paid in Spain.”
“Maybe it’s not necessary to collaborate but at least we need to check what the accountant in the US has done. More information taxandlaw.es”
“You file for an extension on your US tax return in April, pay taxes in Spain in June, and then file your US taxes after completing your Spanish tax filing. This way you can claim any applicable foreign tax credits for the taxes paid in Spain when filing your US return.”
“Why wait until June? La renta opens around the 4–6th April. So both can be filed without penalty.”
“The first extension is automatic for expats.”
“But, again, the USA tax is still due on the 15th of April. The 2-month extension is for filing only. It’s a frustrating situation! You could choose not to pay but you will accrue interest on the money owed.”
“I know but we are talking about filing deadlines, not payments. People do get confused because in the U.S., we just use the same date for all of it..but abroad, the payment is one thing, the filing is another.”
“Technically, we do file and pay by April 15… that’s the deadline. I’m aware things can be extended, but most people use one date to get things done by.”
Conclusion
Members of the American expat community in Spain generally agree that filing Spanish taxes first—as the country of tax residence—makes the most sense. Most then submit their U.S. returns with a foreign tax credit to avoid double taxation.
While it is not legally required to have U.S. and Spanish tax professionals collaborate, some believe coordination adds value, especially for complex cases or those with autónomo income, multiple income streams, or investments.
Many say it’s sufficient to share your Spanish tax return with your U.S. preparer, especially since the U.S. provides an automatic 2-month filing extension for those living abroad, although payments are still due by April 15 to avoid interest.
Some recommend using specialized tax professionals who understand both systems, since Spanish taxes tend to be higher, and missteps—especially in the case of audits—can be costly. Ultimately, one size does not fit all, and those with more complex situations may still benefit from some level of coordination between advisors.
