Question
“I’m deciding whether we should ren or sell our residence in Texas and rent it out vs. put it up for sale as we prepare to permanently move to Spain in July 2025.
I know any upsides largely hinge upon the chosen tenant, but is there anything else I should be wary of? For example, should I just try to sell in 2025 to avoid Spanish capital gains tax?
I’m interested in the experiences of those who chose to rent out their home in the United States particularly if your home is in a rural area. Do you use a property manager, how are you paid, did you set up a forwarding US mailing address?”
Answers
These are the answers of Spainguru’s Facebook group members:
“We just did this moving from Atlanta to Barcelona. We put our house on the market in May and sold in 1 week/closed in 2 all cash. Best decision ever.
- Cash flow in Barcelona has been no problem to manage as we had enough money in the bank to easily cover our short term rental and then the down payment on our permanent apartment (plus you pay 10% tax up front here at closing).
- We avoided paying the tax as we a) were in Spain under the 183 days and b) sold in the same year as moving here.
- Nothing to manage back home (we’d rented out our house in Atlanta before and lived in CA and it was a pain to do from so far -can’t imagine doing it from Spain). So if it’s permanent for you as it was for us, sell and never look back.”
“We’ve short-term rented out our rural house in Idaho… it does really well, but we have decided to sell.”
“I invest remotely, so I always use a property manager since I’m not on-site or even close. We are considering keeping our primary residence and renting it as an Airbnb, which works for our area. This also gives us a place to stay when we come home to visit and a place to land if we ever decide to move back to the US.”
“Don’t sell (or buy something smaller to rent out in Texas)! I have seen it time and time again where owners sell up in their home country and move to a cheaper country and then decide later on to move back to the states and can’t afford to buy back in.
We have lived in different continents and always kept a bolt hold in our native country. You never know what’s around the corner; it might be more hassle in the short term, but trust me when I say in the long term it is worth it!”
“We chose to keep our house in the states in case it didn’t work out over here and needed to come back – we rented it out with a property manager and honestly it barely broke even.
Also, there were severe storms where we lived, and it was nerve-wracking wondering if it got hit by a tornado with tenants in it. We use a mail scanning service for all our mail in the states. No complaints so far. I definitely would recommend trying to sell if you’re dead set on Spain.”
“If you rent it out and then decide you want to sell it you will pay capital gains in the US anyway. I’m selling and investing in my future here.”
“We rented our house in NJ because we have a really good mortgage rate and we do plan to go back in a couple of years. It has been more difficult than we expected:
- Our house is big and with a pool and the cost of insuring it as a rental property went up significantly (from $3000 a year to $8200 a year)
- Insurance company made us hire a property manager which costs $500 a month
- The first year our tenant stopped paying and we had to go to court to evict her. It was a long process and she didn’t move out until we showed up with a court officer and a locksmith. We lost around $80k (process took about 10 months + legal fees + 2 trips to the US + all the damage in our house)
- Managing anything long distance is difficult
If we had to decide again we still would do the same since when we go back to the US we will still have our house. Otherwise with current mortgage rates and the current real estate market, we wouldn’t be able to afford the same house.”
“If you don’t sell and then become Spanish tax resident, and then decide to sell, you will become liable for capital gains tax in Spain.”
“As I understand it, you subtract out all the sales costs in addition to the original purchase price of the house, and if you are joint owners with a spouse you split the profits between the two spouses for tax purposes. There are other rules if you are past a certain age and it is your primary residence, but those likely won’t apply if you rent.”
“Spain doesn’t have the 500k capital gains tax write-offs like US. There are ways around it if you are using profit to purchase a home in Spain, but many choose to sell before becoming residents for this reason.”
“Capital gains in Spain will be 19-29%. You can reinvest the money in Spain when you first arrive, if you rent out, when you do sell it will be considered an investment property and taxed.”
“It really depends on if you can do better with your money elsewhere. Rentals provide regular income which is something stocks don’t do (other than dividends but those are likely way less).
Would another property or properties pay you more? Is it worth paying a property manager and other expenses like property tax, insurance, and repairs, as well as vacancies between renters. We haven’t sold our main home yet but I’m ready. We could be earning a lot more if we sold it and bought other properties.”
“This is asked a lot. The usual response is to sell before you become a Spanish tax resident as you are taxed on all the profit, though if you are over 65 I think there are dispensations.”
“Sell before you become a resident of Spain to avoid taxes. Invest the money in the market. Monthly gains could be less than rental income but less headaches (no maintenance, property manager, property taxes, bad tenants, etc) while keeping your money growing.”
“We’re going to rent out one too, we are in Georgia, that income would be good in Spain. Also we have family that can look after the property if anything happens.”
“Most people do return to the States. I’d keep it/rent it.”
“If your move is definitely permanent, I’d sell it and then buy something in Spain. If you might move back, I’d rent it out. Also it’s better to sell this year before you become a Spanish tax resident unless you’re eligible for the Beckham law. Then it doesn’t matter much.”
“Under the Beckham law, you pay in the US what you make in the US and you pay 24% on what you make in Spain.”
“It may be useful to keep your property in the US. Keeping a connection such as a property can come in handy. Lends legitimacy to your case if your bank account or credit cards were considering closing your accounts, allows you to keep a US driver’s license in many states, it’s a source of income renting out and a place to return to if things don’t work out.
Renting it can be very stressful, especially when your property manager emails you for a major repair or if there is a tenant issue. Should you decide to sell after you become a Spanish resident you’ll pay a lot of money to Spain for it. It’s a tough decision.
If you’re sure you’re not returning or affluent enough to start over again, should you decide to return I’d probably sell now. Property values are very high, housing is tight, that won’t last forever.”
“Don’t sell. Rent it out. I wish I had. So many expats decide the adventure isn’t really what they want. I’m glad I left, but if I could do it again, I would do it completely differently, including renting out that house.”
“If you sell first, do it after June. If you do it and don’t live in Spain over (I think it’s) 183 days, no capital gains tax. If it’s over that number of days, you pay.”
“You could sell it, time your move so you don’t have to pay capital gains, and put that money into a nice CD. You can get a decent, consistent return without having to manage anything. It’d be trivial to get a $1500/month return on something like $500k.”
“Trusts are not recognized in Spain.”
Conclusion
The Spainguru community shared a wide range of experiences and perspectives on whether to rent or sell your US property before moving to Spain. Many favor selling before becoming a Spanish tax resident to avoid Spanish capital gains tax, which can range from 19% to 30%. Selling while still under the 183-day threshold as a non-resident appears to be a common strategy.
However, others prefer renting, especially if they plan to return to the US, value their mortgage rate, or want a fallback option. Renting comes with challenges—costly insurance, property management, tenant issues, and long-distance stress. Still, it retains the asset and offers potential income.
Ultimately, the decision hinges on financial goals, emotional ties, market conditions, and certainty about your long-term plans. A tax advisor on both sides of the Atlantic is highly recommended.
The pros and cons of selling vs renting while living abroad
| Factor | Rent | Sell |
|---|---|---|
| Capital Gains Tax in Spain | If you sell after becoming a Spanish tax resident, expect 19–30% tax on profits | Selling before residency or under 183 days often avoids Spanish capital gains tax |
| Income Potential | Ongoing rental income (e.g. Airbnb or long-term rent) | Lump sum cash from sale; potential to invest in Spain or elsewhere |
| Flexibility / Return Option | Keeps a fallback if you return to the U.S. | No fallback if the move doesn’t work out |
| Logistics | Requires a property manager, US mailing address, ongoing oversight | Clean break — nothing to manage from abroad |
| Insurance Costs | Can be significantly higher (some paid $8200/yr); may require property manager | No ongoing property-related costs |
| Tenant Issues | Potential for non-payment, legal battles, property damage | Avoids the risk of bad tenants and maintenance headaches |
| Emotional Connection | Keeps home base, maintains U.S. roots | May feel like “cutting ties” or losing a part of your past |
| Market Timing | Rental income might be steady but not maximized in a hot market | Can sell at a market peak, especially before housing cools |
| Use in the U.S. | Can be used when visiting or if returning temporarily | No property to use in the U.S. unless buying again |
| Banking / Residency Benefits | Helps retain U.S. residency connections (e.g. driver’s license, bank legitimacy) | May face complications if fully detached from U.S. infrastructure |
| Investment Flexibility | Tied up in U.S. real estate | Frees capital to invest elsewhere — stocks, Spanish real estate, CDs, etc. |
| Stress & Hassle | Can be very stressful managing remotely, especially with storms, repairs, or tenant drama | Lower mental load — simpler relocation |
| Long-Term Financial Strategy | Retains a hard asset with appreciation potential | Opportunity to reinvest in higher-yield or diversified assets |
| Risk of Regret | Safer if unsure about staying in Spain | Many regret selling if they later want to return but can’t afford to rebuy |
