Spain Expat Tax Guide 2025
FEIE, Foreign Tax Credits, banking, visa options & filing strategies for US expats in Spain.
How Spain Taxes Work
Spain's tax system: Worldwide income for tax residents; Beckham Law option for new residents.
FEIE vs Foreign Tax Credit
FTC often better than FEIE due to higher Spanish rates. Totalization agreement prevents double SS taxation. Beckham Law caps tax at 24% for 6 years.
The FEIE allows you to exclude up to $130,000 of foreign earned income from US taxation in 2025.
Social Security & Self-Employment Tax
Spain has a totalization agreement with the US. This prevents double Social Security taxation.
Banking for US Expats
Santander, BBVA, and CaixaBank accept US expats with proper documentation.
Visa Options
Digital Nomad visa, Non-Lucrative visa, or Autónomo (self-employed) registration.
Cost of Living
Moderate — $2,000–$3,500/month in Barcelona/Madrid, less in smaller cities.
Frequently Asked Questions
Do US expats in Spain need to file US taxes?
Yes. US citizens must file regardless of where they live. The FEIE can exclude up to $130,000.
Should I use FEIE or FTC?
FTC often better than FEIE due to higher Spanish rates. Totalization agreement prevents double SS taxation. Beckham Law caps tax at 24% for 6 years.
What is the cost of living?
Moderate — $2,000–$3,500/month in Barcelona/Madrid, less in smaller cities.
Compare FEIE vs FTC vs Combined strategies for Spain.
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