US Citizens Working in Spain
See what you actually take home after US and Spain taxes — whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Spain:
- •Spain has progressive income tax rates up to 47% (varies by region)
- •FEIE can exclude up to ~$132,900 from US taxation if you meet the physical presence test
- •Beckham Law may offer flat 24% tax rate for qualifying expats
- •Cost of living in Spain is lower than most Western European countries
Who taxes you?
As a US citizen working in Spain, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to approximately $132,900 of foreign earned income if you meet the 330-day physical presence test. Spain taxes residents on Spanish-sourced income with progressive rates up to 47% (rates vary by autonomous region). The Beckham Law (Special Tax Regime) may offer a flat 24% tax rate for qualifying expats in their first 6 years. The US-Spain tax treaty provides foreign tax credits to prevent double taxation.
Common pitfalls
- Spanish tax rates are high, with top marginal rate up to 47% (varies by region)
- Beckham Law eligibility is complex and may not apply to all expats
- Not meeting the 330-day physical presence test disqualifies you from FEIE
- State tax obligations may persist if you maintain US state residency
- Currency fluctuations between USD and EUR can impact your effective income
Frequently asked questions
Yes. US citizens must file US tax returns regardless of where they live. However, you may not owe US taxes if your income is below the FEIE threshold and you meet the physical presence test.
Spain has a progressive income tax system with rates from 19% to 47% (rates vary by autonomous region). The Beckham Law may offer a flat 24% rate for qualifying expats. You can claim foreign tax credits on your US return to offset taxes paid to Spain.
The Beckham Law (Special Tax Regime) is a tax regime that offers a flat 24% income tax rate for qualifying expats in their first 6 years in Spain. Eligibility requirements are strict and may not apply to all expats.
Generally no. The US-Spain tax treaty and foreign tax credits help prevent double taxation. You'll typically pay the higher of the two tax rates, not both.
Official resources
Primary sources:
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