Question about Spain Digital Nomad Visa taxes
I’m a freelancer making $70,000 per year in the US, and I’m considering applying for autonomo status in Spain under a Spain Digital Nomad Visa. Can you estimate roughly what percentage of taxes I might pay in both countries, without considering specific federal or state taxes?
Answers
These are the answers of some Facebook group members:
”I have no clue what you are asking in this post”
”No! There’s a new law.,the first two years you’re registered as autónomo you only have to pay 80 euros to the Spanish social security system regardless of how much you make”
”80 euros a month”
”Depends a little on the region. If Madrid, you’ll pay about 20k in income taxes and 1k in social security the first year, then about 18k in income taxes and 5.5k in social security the second year (then a little more every year for the next 10 years or so, because social security is going up for autonomous). Barcelona would be a little more. You can then either get a tax credit or foreign-earned income exclusion in the USA. Honestly, the issue isn’t paying taxes in the USA, but having to pay an arm and a leg to a U.S. accountant to do it correctly”
”Place it in any calculator, not straightforward because it’s progressive (different rate for every slab of total amount). Ballpark for 70k is ~30%, social security is deductible and any autonomous expenses but I call that bonus territory in throw-the-darts accounting. The US taxes you on worldwide income for being a citizen, resident in states or not, but treaties work around double taxation, you’ll have to check it out for US-Spain”
In conclusion, according to Spainguru Facebook group members, estimating taxes for a freelancer earning $70,000 per year in the US and considering autonomo status in Spain involves some complexity. In Spain, the initial two years might have a reduced social security payment of 80 euros per month, and income taxes can vary depending on the region but could be around 30% of earnings. Meanwhile, in the US, taxes are based on worldwide income for citizens, but there are treaties to mitigate double taxation. It’s essential to consider both countries’ tax regulations and possibly consult a tax professional to navigate the intricacies of this cross-border tax situation.
