American in Spain: Financial planning and investing tips for U.S. Expats moving to Spain
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- čas přidán 15. 07. 2024
- When it comes to top destinations abroad for Americans and U.S. expats, Spain is certainly one of the favorite choices. There are roughly 40,000-50,000 Americans residing in Spain, depending on the source you reference.
For Americans thinking about making the move abroad - whether it's for temporary work for a U.S. company, a job that is based in Spain, or retirement - there are many financial components to consider. It's not just as simple as leaving your U.S. finances behind when you board the plane.
Walkner Condon's Keith Poniewaz, Ph.D., walks you through several of the key financial considerations to be aware of if you're planning a move or even just thinking about one. A financial advisor who works with U.S. expats, Keith covers Foreign Earned Income Exclusion (FEIE), trusts and inheritance, why the location of your investments matters, and more.
Is relocation from the U.S. to Spain in your future? You can schedule a meeting to discuss your details more in-depth with our team of U.S. expat financial advisors below.
LINKS
▶ Subscribe to Walkner Condon's U.S. Expat CZcams Channel: bit.ly/3JnpPnW
💻 Additional Educational Materials for Expats: bit.ly/3MIC0ht
📞 Contact Us: usexpatinvesting.com/contact/
📅 Meet with an Advisor: usexpatinvesting.com/book-an-...
---------- Video Contents ----------
0:00 - Intro
0:27 - U.S. Expat Reporting Obligations
0:50 - Moving to Spain for Work
1:36 - Investing in Retirement Accounts
3:33 - Location of Assets when Investing
4:30 - Estate Planning in Spain
6:37 - Taxes on Estate & Inheritance
8:37 - Gifting Strategies & Planning
9:07 - Managing Assets in Retirement
9:35 - Questions about Moving to Spain?
9:52 - Disclosures
Very informative! Thank you
Glad it was helpful!
Hi, I have a question. You mention that as an expat working in Spain, you can contribute to a pension plan via your job. In my case, I don’t have a plan through my job. Could I create a Spanish pension account? Or would this be considered a PFIC and not make it possible to declare it on my US taxes? Thanks
Why does Spain utilize airships for inheritances? 😉
We were considering retirement to Portugal, but they are shotting down NHR, very disappointed.
We visited both Portugal and Spain, and loved Spain.
So is couple retiring in Spain now will pay lesser taxes than Portugal?
We are americans, and roughly will get social security about $3000/mo and 401k $2000/mo. Will be paying roughly $250/mo in US taxes.
How much taxes we will roughly pay in Spain? I am 59 today.
You guys have luck with trade etc? I tried those and c++ language but now creating strategies on pluto trading as it is much more simpler and faster to test theories.
Great video 👍
Is it same for Canadian planing to move to Spain. I own apartment in Canada with no mortgage on it, planing to move to Spain and live from renting that apartment in Canada. Do I have to declare that income to Spanish government and pay taxes on it?
Thank you.
The rules and regulations vary between being a U.S. expat in Spain and a Canadian expat in Spain. Since our expertise is with the former, we'd encourage you to consult with a tax advisor for your particular situation when it comes to renting your apartment in Canada while in Spain.
If you are both a Spanish citizen and reside there over 183 days, but are also a US citizen with a remote job from a US company where do you pay your taxes Spain or US? Can't seem to get a clear answer online.
You'll need to pay taxes in both countries, but can use tax credits to offset your taxes. We'd recommend you consult with an accountant.
Do you have a website? Also, retiring to Spain within next couple of months and will need help with my and my husband's US and Spanish taxes. Is that a service you provide? Final question is that we'd like to purchase a house in Spain. Can we purchase from a US bank account? Thank you
Hi Liz! Our website for U.S. expats is usexpatinvesting.com. While we don't offer tax preparation services, we build holistic financial plans that take into account items like a home purchase, tax liability, and the other aspects of your individual financial situation.
The short answer to your question regarding a home purchase is yes, you can purchase from a U.S. bank account. You'll want to consider the exchange rate offered by your bank and wire transfer fees, but you should be able to transfer funds. Feel free to book a meeting with one of our advisors to discuss your questions more in-depth.
Thank you for having made this video. I'm a U.S. citizen, moving to Spain soon, and it's a helpful introduction to several issue that I had not yet thought about. I'll be reading your website to learn more about your company's services. For now, may I please ask you if you could please advise? Do employers in Spain deduct your tax from your gross income and if so, how do you get them to comply with the U.S.-Spain tax treaty if showing it to them has not worked? And what else can one do, concretely, to gain the benefits that the treaty provides? Thanks in advance.
Hi, Jacqueline! The tax treaty does not eliminate your need to pay tax on your country of residence. You will need to pay Spanish tax.
The treaty comes into effect insofar as it allows you to apply those taxes paid as credits against your US tax obligations when you file your US taxes. If you are eligible in Spain for the Beckham rule, your employer will help with that. We are not tax professionals and recommend you consult with an accountant to ensure your filings are done correctly
@@usexpatinvesting
Hi, Walkner,
Thanks very much for your helpful reply.
Regards,
Jacqueline
I will be retiring in Spain in a couple of weeks from California. I have an American Green Card and I am a citizen of the Netherlands. I'll be losing this Green Card when I stay in Spain longer than 6 months, which is my intention. I will still have to pay income tax in the US as well since my Social Security, as well as rental income come from the US.
I receive rental income from a home in California and I read that I would have to pay 24% tax and would have to pay quarterly in Spain (I hope you can help me with that later).
I will be registering at the townhall in Valencia and at the tax office in April. My question to you is, at what moment will I have to start paying taxes, at the moment of registration at the townhall, at the moment of registration at the tax office, or, you might now at what moment exactly. I hope to get your answer and I appreciate any help you can provide
Hi Hermina, thanks for the question! While taxation is part of a holistic financial plan, this falls outside of our area of expertise since it is tax-specific with a very unique situation. We'd encourage you to reach out to a qualified Spanish tax preparer for an answer to this particular question.
Soy de Valencia, Spain. Pagas impuestos cuando adquieres una vivienda.
@@luismiguelsoria7985 Muchias Gracias Luis Miguel. Estoy in Valencia tambien y me quedo en el apartamento de mi hijo. Estoy recibiendo mi empadronamiento en esta dirección hasta que tenga un lugar propio, dentro de un mes o dos. ¿Todavía tengo que empezar a pagar cuando adquiero mi propio piso o ahora empezará a pagar en el momento en que me llegue empadronamiento desde Valencia? Otra vez muchas gracias para tu consejo.
You're not losing your green card after 6 months for tax purposes. File a form 417
What if I am a dual citizen? Does anything get simpler? Can I just renounce my American citizenship?
You can renounce. But it may not get simpler…
Depending on your net worth you may face an exit tax:
americansoverseas.org/en/knowledge-centre/us-taxes-and-liability/exit-tax-us/
What if I’m American, live in Spain but work remotely for a company based inside the USA. Do I have to pay taxes to Spain AND to USA??😣🔫
While we're not licensed accountants and recommend you consult with a tax professional, the short answer is yes. You'll need to pay taxes in both countries. But you can use tax credits to offset your taxes.
Does Spain tax expat retirees making withdrawals from a Roth IRA?
Thanks for the question, David. Yes, that's the case for Spain. However, as always consult with your local tax preparer when it comes to your specific situation.
Checked out comments, but it doesn't look like they respond. I'll just ask my questions to the tax person here in Spain, who will file for me here.
Hi Ken, that's your best bet when it comes to tax-specific questions for Spain and our recommendation regardless of the country since our financial advisors aren't licensed tax preparers. With the myriad tax complexities as an expat, we provide information on taxation as it applies to financial planning and investing, but we'd encourage those seeking tax advice tailored to their situation to reach out to a tax preparer where they reside.
Spanish tax ouch
New law invest 10.000 million € in spain and we will give you a pata negra ham!🤣
Simply said...it sucks being an American if you live out of the country. Best decision is to give up the citizenship.
Not necessarily always the case. We dove into the pros and cons of expatriation in a recent miniseries on our podcast:
Ep. 1: czcams.com/video/7nYqkQPgrlo/video.html
Ep. 2: czcams.com/video/NqikgFlzGVw/video.html