This article is based on a real Facebook group Q&A where Americans compared first-hand experiences with California tax residency while moving to Spain, including what happens if you keep California rental property or pension income and whether a “pit stop” in Nevada, Texas, Florida, or another state meaningfully reduces ongoing state tax exposure.
Question
A U.S. taxpayer currently living in California plans on moving to Spain and wants to understand whether California will treat them as no longer a tax resident after the move, or whether California may continue to claim tax residency unless they take additional steps first, such as establishing residency in another U.S. state for several months, especially if they will keep California rental property and have future California-connected pension income.
Key Takeaway #1: California Often Evaluates “Residency” Through Ongoing Ties, Not Your Flight Ticket
Community members repeatedly described California tax residency as a facts-and-circumstances analysis. The consistent theme was that California looks at the total pattern of your life, not just the fact that you are moving to Spain.
- Many posters emphasized California is “aggressive” and may “hold on to their people for tax purposes,” which is why documentation and consistency matter when moving to Spain.
- Several replies framed the goal as demonstrating you truly “severed the ties,” rather than relying on a single action or one-time form.
Supporting quotes:
- “CA is aggressive to hold on to their people for tax purposes.”
- “If you demonstrate you severed the ties…”
- “Key hooks can be voter registration, driver’s license, mailing address, storage units, family ties etc.”
Practical pattern readers can learn from (not legal advice): community members treated California tax residency like an audit narrative. They focused on aligning licenses, voting, addresses, schooling, leases, and filings so the story of moving to Spain is coherent and evidence-backed.
Key Takeaway #2: Keeping California Property or California-Source Income Usually Means Ongoing California Filing, Even If You Are Not a Resident
A major point of agreement was that retaining California rental property and certain California-source income can trigger ongoing California tax obligations, even if you are no longer a California tax resident. Community members frequently separated two concepts:
- being taxed on California-source income, and
- being classified as a California resident for tax purposes.
- People who sold property and eliminated California income described it as easier to “sever” California tax residency.
- People who kept a home or rental income expected to file California returns as non-residents.
Supporting quotes:
- “I sold all my property.”
- “It is absolutely possible, but having no CA income or property is really the key.”
- “If you still have rental property IN California, there is no way you are not going to be taxed in CA.”
- “Filing taxes—since we own a home in California—we file Non-resident taxes.”
Community nuance worth highlighting: while some replies were categorical about being taxed if property remains, others stressed that filing and paying are not always the same outcome (for example, when depreciation applies to rentals). That nuance matters when evaluating what “double taxation” means in real cash terms for those moving to Spain.
Key Takeaway #3: The Most Repeated “Sever Ties” Checklist Was Administrative, Not Just Physical
Several commenters shared a practical checklist: remove the signals that California can interpret as continued residency. In the discussion, the most repeated items were not immigration-related; they were administrative and behavioral.
- Multiple posters flagged driver’s licenses, voter registration, and day-to-day account addresses as core evidence.
- Others mentioned children’s schooling and foreign leases as strong proof of a real relocation when moving to Spain.
- Some brought up unexpected indicators, such as “public storage” being interpreted as a sign the move is temporary.
Supporting quotes:
- “I surrendered my driver’s license as soon as I got my Spanish driver’s license (within the first 6 months…).”
- “I changed my voter registration to reflect voting from abroad with no intentions to move back.”
- “give up California drivers license, register to vote with the US consulate abroad, have a foreign lease, children at school…”
- “CA will even look at renting a public storage unit…”
Analytical takeaway: when planning California tax residency changes while moving to Spain, community members focused on eliminating ambiguity. The more your life still looks “California-based,” the more you invite questions.
Key Takeaway #4: A “Pit Stop” State Can Help, but Many See It as Risk Management Rather Than a Magic Shield
The group was split on whether establishing residency in another state before moving to Spain is necessary. Many saw it as a strategic option, particularly for retirees with pensions or those expecting California scrutiny. Others argued California may still question you and you should prepare for that possibility regardless.
- Several people described a two-step move as logical: “Calif → Texas → Spain” or living in Washington for months before Spain.
- At the same time, others stated California may not care whether you went to Nevada, Florida, or Spain; the focus is on whether you truly left California and can prove it.
- Some posters recommended South Dakota because it is perceived as easier to establish residency, especially for full-time travelers, though others raised concerns about how that approach could be viewed.
Supporting quotes:
- “Calif —>texas->spain.”
- “I moved from CA to WA for 6 months prior to moving to Spain because I had heard how ‘sticky’ CA was.”
- “California won’t care that I moved to Florida or Texas or Nevada or Spain…”
- “Check out South Dakota! They actually advertise themselves as a nomad haven…”
- “SD allows you to become a resident after one night.”
- “that’s not true about SD allowing you to become a resident after one night; you might be called upon to prove residency…”
Community-focused interpretation: a stopover state is a way to strengthen your narrative and reduce exposure for certain income types. But posters repeatedly returned to the same principle: documentation and consistency matter more than the label of a new state.
Key Takeaway #5: Remote Work and Employer Location Can Keep California Tax Problems Alive for Years
One of the most cautionary threads involved remote employment tied to California. Even if you are physically elsewhere, the employment connection to a California company was described as a recurring trigger for California tax bills.
- Community members described receiving ongoing notices “with interest,” and struggling to stop them through letters and calls.
- Others warned that California can escalate collection actions if it believes tax is owed.
Supporting quotes:
- “My partner worked remote for a CA company… CA considers him a tax resident because the company is in CA.”
- “We keep getting tax bills. With interest.”
- “This was over 10 years ago and CA still haunts him.”
- “they just seized money from my bank account.”
Why this matters for moving to Spain: many people plan to keep U.S. remote work while abroad. This thread illustrates why California tax residency risk is not just about where you sleep, but how your income is sourced and documented.
Key Takeaway #6: Banking and Address Logistics Create Real-World Friction That Can Spill Into Residency Narratives
The conversation highlighted a practical constraint that many relocation plans overlook: U.S. banks and card issuers can restrict foreign addresses or flag mail services, complicating both day-to-day life and the “paper trail” you leave behind.
- Some posters reported banks that “don’t work with international customers,” including warnings of account closure when switching to a Spanish address.
- Others said certain institutions were more accommodating, but credit card issuers could still refuse foreign addresses.
- Mail services with street addresses were debated: some thought they were “accepted by banks,” while others said “banks are onto” them and use systems to detect commercial mailboxes.
Supporting quotes:
- “the minute I change my address to my Spanish address, they will close my accounts.”
- “Banks are onto postal services that offer street addresses.”
- “Banks use computerized systems to check customers’ new addresses…”
- “not all banks have this restriction.”
- “credit card companies care… They don’t allow foreign addresses.”
- “I had to use my mother’s address… They don’t allow foreign addresses.”
Analytical takeaway: even if banking is not a tax rule, it can influence the practical choices people make about addresses and documentation. Those choices can then become part of the broader evidence set around California tax residency while moving to Spain.
Key Takeaway #7: State Taxes and Spain Taxes Do Not Always Net Out, Especially When Treaties Don’t Cover State Tax
Multiple participants warned against assuming the move to Spain automatically eliminates U.S. state tax pain through credits or treaty relief. The group repeatedly noted that the U.S.–Spain treaty does not address state tax, and certain income types may not be creditable in a way that fully offsets state withholding.
- One person summarized the core warning that triggered the original question: “since the U.S.–Spain tax treaty only covers federal taxes, not state.”
- Another described a scenario where a pension is taxed by a U.S. state but not taxed by Spain in a way that allows recovery, creating a permanent leakage.
Supporting quotes:
- “since the U.S.–Spain tax treaty only covers federal taxes, not state”
- “I’m not sure the agreement… is with State taxes. Could be just with Federal taxes.”
- “there is no way for me to recoup that money…”
For readers moving to Spain, the practical lesson is that “double taxation” is not always solved by filing more forms. It often depends on income type, sourcing, and how credits work in practice.
Key Takeaway #8: Many People Expect California Contact Later, So They Build a “Defense File”
Beyond specific tactics, a clear behavioral pattern emerged: people assume they may need to prove their position later, so they organize evidence now.
- Several replies advised keeping records for years.
- Others described shifting mindset from “how do I avoid attention?” to “how do I make my case easy if questioned?”
Supporting quotes:
- “Keep everything well-documented in a folder…”
- “hold on to those records for several years.”
- “How do I keep my ducks in a row…”
This is not about fear; it is about reducing uncertainty. For those moving to Spain, being proactive can reduce stress if California later questions residency status.
Conclusion
For Americans moving to Spain, California tax residency is a recurring pain point because it sits at the intersection of lifestyle decisions, paper trails, and income sourcing. The community discussion shows that outcomes vary widely depending on facts: whether you keep California property, whether you have California-source income, whether you work remotely for a California company, and whether your documentation tells a consistent story of permanent departure.
Across the replies, several themes repeated. First, many expats view California as “aggressive,” so they focus on severing ties in a comprehensive way: licenses, voting, addresses, and daily-life indicators.
Second, keeping California rental property or pensions often leads to ongoing California filings and, in many cases, ongoing tax exposure on California-source income even if you are not a resident.
Third, a temporary move to another state before moving to Spain can strengthen the narrative for some people, but it is not universally seen as necessary or sufficient. Finally, practical constraints like banking and address rules can push people into workarounds that become part of the residency record, which is why planning should be coordinated and evidence-driven.
Readers considering moving to Spain can use these takeaways to identify their own risk areas: California-source income, remote employment ties, administrative signals of residency, and the practical realities of maintaining U.S. financial access while living abroad. The most community-aligned approach was not a single “hack,” but a coherent plan supported by consistent documentation.
Frequently Asked Questions
Is California tax residency still a risk after moving to Spain?
Yes. Community members repeatedly described California tax residency as a risk even when moving to Spain, especially if administrative ties, California-source income, or employment connections remain.
If I keep a California rental property, will I still file California taxes while moving to Spain?
Many posters said yes. Even when moving to Spain, California-source rental income commonly leads people to file “Non-resident taxes,” and several warned that “there is no way you are not going to be taxed in CA” on California-source income.
Do I need to move to Nevada, Texas, or Florida before moving to Spain to end California tax residency?
Not necessarily. Some respondents did a stopover move and found it helpful, while others said California may challenge you regardless. The recurring theme was that California tax residency hinges on evidence that you severed ties, not only on where you moved next.
Can remote work for a California company cause ongoing California tax issues when moving to Spain?
Community members reported prolonged problems in this scenario. One noted “CA considers him a tax resident because the company is in CA” and described recurring bills “with interest,” suggesting remote employment ties can be a long-term trigger.
Does the U.S.–Spain tax treaty protect me from California tax residency claims?
Community members specifically warned that the treaty “only covers federal taxes, not state.” When moving to Spain, this can matter because state taxation may not be offset the way people expect.
Why do banking and address choices matter when moving to Spain?
The discussion highlighted that some banks “don’t work with international customers,” and that mail services may be flagged because “banks are onto postal services.” These constraints can influence how you manage addresses and documentation, which may indirectly affect a California tax residency narrative.
Disclaimer
This article reflects personal experiences shared by community members and is not legal or tax advice. Immigration and tax rules may change. Always consult qualified experts. You can find recommended immigration professionals here: https://spainguru.es/services-for-spanish-visas/
You can join Spainguru’s community here: https://spainguru.es/spainguru-facebook-groups-and-spainguru-community/
