Question
Do I have to file Spain Taxes if I just live of the money I saved? I dont have an income and don’t retire until 2030. EU citizen
Answers
These are the answers from Spainguru’s Facebook group members:
“You will need to file. Period.”
“If you are a tax resident in Spain you have to file annually.”
“If you’re a Tax resident of Spain, yes. You would pay taxes in Spain on any investment income like interest and dividends just like you if you were in the US.
You would also have to file a US tax return if you meet the filing threshold, but there’s a tax treaty that avoids double taxation. For most people that means no US taxes would be due. Everyone should get professional tax advice, both in Spain and in their home state (as there can be state tax consequences as well).”
“It depends. Is it actually a savings account? Or is it a retirement account, like a 401K or IRA? If so, is it a Roth account? Does it make interest? Is it just an investment account, not necessarily tax-advantaged in the US?
Few too many variables here to give a solid answer.”
“Presumably, the savings are invested, aren’t they? If so, you have interest, dividends. Plus, you are working and earning money. Are you a tax resident of Spain?”
“Yes, but rates vary for passive versus ‘salary’ income.”
“If you qualify for the Spanish Non Lucrative Visa on saved income, you’ll pay income taxes, as others mention, on interest, dividends, rental income and other gains.
If you are ultra wealthy, say millions, the wealth tax might apply. Spanish income taxes, including the wealth tax, make their income tax rates higher than in the US.
But local/regional/state and property taxes here are lower: and much lower than in high tax states.
Per US-Spain Tax Treaty, income taxes paid by a US citizen or Resident Alien as a resident in Spain are an offset on US income taxes, so in theory, no double taxation.
Comprehensive healthcare insurance and medicine generally cost less than in the US, often much less.
Although lifestyle varies, many, if not most, would find the cost of living here to be lower than in the US, and again much lower than in many high cost parts of the US.
My opinion and my experience is that the relaxed, social way of life in Spain and the quality of life here is higher than in the US and generally healthier. Spain is usually in the Top Five globally in national longevity.
Many here walk more, socialize more and eat the natural Mediterranean Diet. I can’t put a financial value on happiness and long life, but it’s a factor for many who come here to live the best years of their life.
So I suggest best to put the higher income taxes into your own value judgement and perspective. Best wishes!”
“The wealth tax in some autonomous regions (e.g. Cataluña) starts at a much lower level. Only a few autonomous regions have the break for people who have more assets.”
“Interest is income.”
Conclusion
The group’s feedback aligns with Spanish tax rules: filing tax returns in Spain depends on whether you are a tax resident and if your savings generate taxable income. You are generally considered a tax resident if you spend more than 183 days a year in Spain or if your main economic interests—such as family or finances—are located there.
Withdrawing previously taxed savings without earning interest is not taxable. However, any interest, dividends, or capital gains are taxed under Spain’s savings income scale, with rates from 19% to 27%. Foreign assets worth over €50,000 must be reported via Modelo 720, even if no tax is due, and wealth tax thresholds vary by autonomous community.
Given the complexity of residency criteria, multiple tax categories, and regional variations, seeking professional tax advice is strongly recommended. This article is based on personal opinions from the Spainguru community and is not legal advice.
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