If you’re considering the Spanish Non lucrative visa, you’re probably focused on documents and timelines. One of the biggest challenges, however, is financial: how Spain taxes your U.S. income, retirement accounts, trusts, and investments once you become a Spanish tax resident. Based on my interview with Jake Barber, head of international financial planning at SJB Global, this article distills the most common questions—and clear answers—Americans ask before relocating.
What are the biggest financial surprises for Americans in Spain?
Expect two tax systems at once. You’ll always file in the U.S., and once resident in Spain, you’ll also be taxed there on worldwide income. Spain bundles “savings income” into a single regime—capital gains, interest, and dividends—taxed at progressive savings rates. On top, many regions apply wealth tax, and the national “solidarity” surcharge may apply depending on assets and region.
Estate/inheritance rules differ, too: in Spain, the beneficiary is taxed, not the estate itself. The headline: assumptions that hold in the U.S. rarely map neatly to Spain.
How does Spain tax U.S. retirement accounts (401(k), IRA)?
The U.S.–Spain tax treaty allows the U.S. to tax U.S. retirement accounts, and Spain also taxes distributions but grants a foreign tax credit. Practically, your withdrawals are taxed as ordinary income in Spain (not capital gains). You cannot move U.S. retirement accounts into Spanish plans; they must remain in the U.S. The investment lineup inside those accounts may face restrictions after you change residency, so plan custodianship and permitted instruments before you move.
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Are Roth IRAs still tax-free in Spain?
No. Spain does not recognize Roth IRAs as tax-exempt. Withdrawals and growth are looked through and taxed under Spain’s rules (e.g., as savings income/capital gains). A common pre-move strategy—case-by-case—is Roth conversions while you are still a U.S. tax resident, potentially swapping future higher ordinary income tax for lower Spanish savings rates later. The viability depends on your annual income, asset mix, and timeline.
How are U.S. trusts viewed and taxed in Spain?
Trusts aren’t recognized in Spain (civil law vs. common law). Living trusts used in the U.S. to avoid probate can create complexity when you live in Spain, because authorities may “look through” the structure. Where possible, consider winding down revocable trusts before moving. Estate planning in Spain typically relies on life-insurance-based wrappers and properly registered wills. You can often use a U.S. will, but it must be structured and registered to be effective in Spain—work with an international lawyer.
Wealth tax and the solidarity surcharge: who pays and how much?
Most regions levy wealth tax, with typical exemptions around €700,000 per person plus ~€300,000 for a primary residence (regional rules vary). Top statutory rates can reach ~3.5%, but planning matters: Spain’s “60% rule” can cap the combined burden by considering the ratio of total tax to certain types of income. Adjusting portfolio income mix (e.g., prioritizing long-term gains over dividends) can materially reduce exposure—often by up to ~80% relative to the sticker rate—with coordinated planning and precise reporting.
When should I start financial and tax planning before the move?
Aim for 12–18 months before your arrival in Spain. Some moves only work while you’re still a U.S. tax resident (e.g., Roth conversions, trust changes, portfolio restructuring). If you delay until after establishing Spanish tax residency, you may lose access to the most effective levers. Early planning also gives time to choose custodians who can legally keep you as a client once you reside in Spain.
How do I avoid double taxation between the U.S. and Spain?
The treaty framework generally prevents double taxation when filings are correct and coordinated. The practical key is having a qualified U.S. tax professional and a Spanish tax adviser who communicate with each other. One notable gap: the treaty doesn’t coordinate estate tax, which can matter for ultra-high-net-worth families. For most movers, accurate filings and proper credits are sufficient; for estates, pre-move planning becomes essential.
Spanish tax residency: beyond the 183-day myth
The “183-day rule” is only one test. Even if you spend fewer than 183 days in Spain, you can be deemed resident if your family or center of vital/economic interests is in Spain. Equally important: immigration timelines and tax years don’t align. Spain’s tax year is the calendar year (Jan 1–Dec 31), but your “immigration year” (e.g., on a Spanish Non lucrative visa) starts the day you first enter with your permit. Tourist days count toward physical presence. Keep precise travel logs and analyze your ties before you assume non-residency.
Can I “country-hop” to pay no tax?
In practice, no. Banks and custodians require annual tax residency certificates and exchange information under anti-money-laundering and transparency rules. If you try to avoid establishing tax residency anywhere, expect red flags, locked accounts, or forced disclosures. Authorities look at facts and ties, not just day counts. The safest path is selecting one primary tax home and planning accordingly.
Should I keep investments in the U.S. or move them offshore?
For U.S. persons, non-U.S. funds/ETFs are often PFICs (Passive Foreign Investment Companies) with punitive U.S. tax treatment. Conversely, once you live in the EU, many brokers restrict access to U.S.-domiciled funds/ETFs due to disclosure rules, leaving you with direct stocks/bonds or specially structured solutions.
Where your account is custodied (U.S. vs. offshore) matters less than the legal protection regime and what you’re allowed to own after you move. Expect higher costs and narrower menus offshore; weigh that against regulatory continuity and service.
CRS, blacklists, and why “AI answers” can mislead
Financial institutions exchange data under the Common Reporting Standard (CRS). Jurisdictions shift between white/grey/black lists, and those lists affect both tax rates and bank compliance. What was true about a given country last year may be wrong today. General AI answers can’t replace jurisdiction-specific, current guidance—use them to orient yourself, not to finalize decisions that trigger filings or penalties.
What does a cross-border financial planner do (vs. a tax adviser)?
A planner designs your investment/custody architecture to be compliant and tax-efficient in both countries (e.g., minimizing wealth-tax exposure, avoiding PFIC traps, choosing viable custodians). A tax adviser files and defends the returns. For Americans in Spain, you typically need both: a U.S. CPA/EA and a Spanish asesor fiscal, plus a planner who coordinates the moving parts.
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Final checklist for Americans moving to Spain on the Spanish Non lucrative visa
- Start 12–18 months out; act while still U.S. tax resident where needed
- Map Spanish tax residency tests (days, family, economic interest)
- Choose custodians that will keep you post-move and allow viable instruments
- Audit Roth/IRA/401(k) strategies ahead of residency
- Review trusts and wills; consider restructuring before arrival
- Model wealth-tax exposure; tune dividend vs. gains and asset location
- Retain a U.S. tax pro and a Spanish tax pro; ensure they coordinate
- Keep meticulous travel and documentation logs from day one
If you need expert help applying the rules to your case, Spainguru can connect you with vetted Spanish tax advisers and cross-border planners who work with Americans every day.
The content of this article is not legal nor financial advice.
