Moving to Spain from the USA is becoming an increasingly attractive prospect to many Americans. With interesting immigration options such as the Spain digital nomad visa, the country is also becoming something of an expat hotspot, with the number of Americans living there increasing by 25% over the past two years. (1)
Many of the people who move are US business owners or contractors who cite a better work-life balance and relaxed environment as key reasons for the move.
Of course, you’ll need to do some research to understand whether moving to Spain is right for you. To help you make a more informed decision, we’ve put together a guide summarizing some of the most important factors to consider. Read on to learn about the benefits of moving to Spain, how to get a visa, where to settle, and much more.
Visa and Residency Options for US Citizens
The Internet and social media often combine forces to present moving abroad as a rosy, adventure-filled process with fast-track options, but the reality is that choosing the best visa for your situation is best done with the help of an experienced Spanish immigration attorney, particularly if you are a business owner.
Short-Term Stays
Currently, Americans can stay in Spain for up to 90 days every 180 days without having to apply for a visa in advance.
Beginning in the second half of 2026, though, the EU plans to implement a visa waiver program. Americans who will be staying in Spain on a short-term basis will need to first apply for the European Travel Information and Authorization System (ETIAS) travel authorization. (2)
Long-Term Visas
A few of the most popular visas for Americans living in Spain include the following:
Digital Nomad Visa
Who it’s for: Remote workers with an employer or clients based outside of Spain
Key requirements: Earn at least €2,762 (~$3,131) per month. A maximum of 20% of income can be Spanish-sourced. (3)
Duration: One year if you apply from outside of Spain, three years if you apply from within Spain. May be renewed if you continue to meet the requirements.
Note: You can apply for permanent residence in Spain after five years of continuous legal residence.
Self-Employed Work Visa
Who it’s for: Self-employed professionals.
Key requirements: A detailed business plan, proof of training or qualifications (e.g., certificate, diplomas), and proof of financial means. Typically, this means you must earn at least €7,200 (~$8,161) per year or have the equivalent in savings.
Duration: One year, renewable for four years afterward.
Non-Lucrative Visa
Who it’s for: Retirees and those with enough passive income or savings to be financially self-sufficient.
Key requirements: Earn at least €28,800 (~$32,647) per year in passive income or have the equivalent in savings.
Duration: One year, renewable every two years, provided you continue to meet the requirements.
Because the non-lucrative visa prohibits active work, visa holders who receive active income in their Spanish bank account run the risk of financial and legal penalties if caught by Spanish tax authorities.
But what if you’re already in Spain on a non-lucrative visa and simply seeking to regularize your situation?
Well, you may be able to convert a non-lucrative visa into a working visa once it expires.
“Converting the lucrative visa into a visa that permits work is often easier than applying for a new one from the beginning,” says Mar Pomerol i Miralles, Founder and CEO of Pomerol Legal Partners. “You can use the non-lucrative visa to enter Spain, then convert it according to your circumstances once you’re here.”
Work Visa
Who it’s for: Those who have received a job offer from a Spanish company willing to sponsor them
Key requirements: An approved work authorization (Autorización de Residencia y Trabajo)
Duration: One year, renewable every one to two years afterward as long as you stay employed
Study Visa
Who it’s for: Students and trainees
Key requirements: Acceptance from an accredited Spanish educational or training institution and at least €7,200 (~$8,161) in savings
Duration: Up to one year, depending on the duration of the course or program you’re enrolled in. May be renewed annually for as long as you’re enrolled
Tip: You can apply for permanent residence in Spain after five years of continuous legal residence.
Navigating the Immigration Process
While the immigration process may vary slightly from person to person, the steps below are a helpful high-level overview.
Secure a Visa & NIE
To get a visa, you’ll need to ensure you:
- meet the requirements
- gather all of the required documents, and
- submit them to your local Spanish consulate or — if applying from Spain — your nearest extranjería (immigration office).
Note: Most trámites, or Spanish governmental procedures, require a cita previa (appointment scheduled in advance). Make sure to research whether you need a cita previa before each step and, if so, how to book one.
Depending on your visa, you may need to first apply for a NIE (Número de Identidad de Extranjero, or foreigner identification number) before you can submit your visa application. If you don’t receive a NIE before submitting your application, you must do so once you arrive in Spain.
Again, you’ll apply for a NIE at either your local Spanish consulate or your nearest extranjería.
Get Your Empadronamiento & Apply for a TIE
Your visa gives you permission to enter Spain, but to stay there for more than 90 days, you’ll need a valid TIE (tarjeta de identidad de extranjero, or foreigner identity card).
Before applying for a TIE, though, you’ll need a certificado de empadronamiento, or residence certificate. Bring your proof of housing, like a rental contract or deed to a property, along with the appropriate paperwork and identification to your nearest ayuntamiento (town hall office).
Once you’ve received your empadronamiento and gathered the rest of the required documents, you can apply for a TIE at your local extranjería.
Register as an Autónomo, if Applicable
Self-employed individuals and business owners typically need to officially register as autónomos (freelancers). You’ll need to first register with Spain’s tax authority. You can do this either in person at your nearest agencia tributaria (tax office) or online with a certificado digital (digital certificate).
Then, you must register at your nearest TGSS (Tesorería General de la Seguridad Social, or social security office).
In your first year as an autónomo, you’re eligible for a reduced social security contribution of €80 (~$91) per month. After that, you’ll pay between €200 (~$226) and €590 (~$668) per month, depending on how much you earn.
Set Yourself Up for Success in Your Day-to-Day
Once you’re done with all of the official immigration procedures, it’s time to get started on all of those little tasks that will make your daily life easier, like:
- Applying for a tarjeta sanitaria, or public health card
- Finding a private health insurance plan (optional, unless your visa requires it)
- Choosing a Spanish mobile plan
- Opening a Spanish bank account
Many US expats in Spain must convert US dollars into euros when transferring funds to their Spanish bank accounts. Currency rates are constantly changing, with the value of USD to EUR fluctuating as much as 7-8% per year, says Ben Small, Director at Ibanista, an expat foreign currency provider.
To get the most value out of your dollar, Ben recommends:
- Keeping most of your currency in USD to avoid conversion fees. Most people only need about three months’ worth of expenses in EUR.
- Use a US credit card on a day-to-day basis — conversion rates for credit cards are usually favorable if your card has low or no foreign transaction fees.
- Bonus: You can keep accumulating rewards (e.g., points, miles)
- Converting small amounts over time rather than large amounts at once, i.e., dollar cost averaging.
Financial and Tax Considerations
US Tax Obligations
Unfortunately, moving to Spain doesn’t eliminate your US tax obligations. Even Americans living abroad must file a US tax return (usually Form 1040) if they earn over a certain threshold. You’ll generally need to file any forms you would have filled in the US and potentially, some expat-specific reports, such as:
- The Foreign Bank Account Report (FBAR): Mandatory for Americans with foreign financial account holdings exceeding $10,000
- Form 8938: Mandatory for Americans with certain foreign assets that exceed $200,000 on the last day of the tax year, or $300,000 at any point during the year
- Note: Threshold doubles for married couples filing jointly
- Form 5471: Mandatory for Americans who control or own foreign corporations past a certain threshold
- Form 8858: Mandatory for Americans registered as autónomo or with a rental property in Spain
All US citizens and permanent tax residents — regardless of where in the world they live — are subject to taxes on their worldwide income at the below rates.
US Tax Rates on Different Income Types
| Income Type | Rate |
| Ordinary income and short-term capital gains | 10% to 37% |
| Long-term capital gains | 0%, 15%, or 20% |
| Assessed if you meet the net income investment tax (NIIT) threshold | 3.8% |
| Corporate income | 21% |
The US has both a tax treaty and a totalization agreement with Spain.
The totalization agreement means you’ll either pay US social security taxes or Spanish social security taxes, not both. The tax treaties’ benefits are limited, however, due to a tricky clause within it.
However, However, you often don’t need to use the tax treaty for most cases.
The US tax code provides two provisions specifically to address double taxation:
- Foreign Tax Credit (FTC): Receive dollar-for-dollar US tax credits for any foreign income taxes you pay
- Foreign Earned Income Exclusion (FEIE): Exclude up to $130,000 of your foreign earned income (in 2025) from federal income taxes
With the help of a skilled US expat tax advisor, you can often bring your US tax liability down to zero. This is especially important if you’re dealing with complex tax situations like owning a business, selling high-value assets, and earning income from multiple sources, among others.
Spanish Tax System
Generally, you’ll need to file taxes in Spain if you’re a tax resident or earn Spanish-source income. Spain will consider you a tax resident if you:
- Spend more than 183 days out of the tax year in the country, OR
- Have Spain as your main base or the center of your economic interest/activities (4)
Tax residents are subject to Spanish taxes on their worldwide income, while non-tax residents pay Spanish taxes only on the income they earn in Spain.
Common Taxes for Spanish Tax Residents
| Income Type | Rate |
| General Taxable Income | 19% to 47% on most types of personal earned income |
| Savings Taxable Income | 19% to 30% on most types of personal passive income |
| Corporate Income | 25% |
| Value-Added Tax (VAT) | 4% to 21% on most goods and services, with discounted rates applying to certain categories* |
*Note: Most self-employed individuals in Spain need to register for and charge VAT if they sell goods or services to companies and individuals based within Spain, European companies that are not VAT-registered, and consumers within the EU but outside of Spain.
What is the Beckham Law?
A special tax break known as the Beckham Law can help foreigners employed in Spain who register as new tax residents benefit from a 24% flat tax on Spanish-source income up to €600,000 (~$678,177) and 0% tax on foreign-source income for up to six years. (5)
Historically, this regime was only available to employees of Spanish companies or foreign companies that paid into the Spanish social security system.
However, as of 2023, the Startup Law has expanded eligibility. Now, certain self-employed individuals may also qualify — but only under specific conditions.
This includes:
- Self-employed professionals with innovative projects, certified by ENISA
- Highly qualified professionals working with startups or in research and development (R&D)
- Company directors who hold less than 25% of the company’s shares, provided other requirements are met
General eligibility criteria still apply, such as not having been a Spanish tax resident in the past five years, relocating to Spain for work purposes, and applying within six months of registering with Spanish social security.
While autónomos were previously excluded, the updated law means the answer is no longer a flat “no,” but rather a “yes — under the right circumstances.
Mar Pomerol i Miralles, Founder and CEO of Pomerol Legal Partners
The so-called Mbappé Law, meanwhile, allows new tax residents living in Madrid to reduce regional taxes on certain kinds of investment income by 20%. (6)
Spanish Tax Rates for Non-Residents
- General income & royalties: 24%
- Capital gains, interest, & dividends: 19%
- Pension income: 8% to 40%, depending on overall income
High-earning expats may be better off registering a Spanish business or opening a Spanish subsidiary of their US business than registering as an autónomo, Mar says. Whether it’s the right move, however, depends on many different factors.
Pair that with the complexity of Spanish tax forms — particularly VAT invoices — and you’ll almost certainly want to work with a Spanish tax professional.
Starting a Business in Spain
Registering a business in Spain isn’t all that dissimilar from registering a business in the US. You’ll need to: (7)
- Choose a business structure, which might include a sociedad de responsabilidad limitada/SL (the Spanish equivalent of an LLC) or sociedad anónima/SA (roughly equivalent to a C corp), among others
- Open a business bank account (optional, but highly recommended)
- Draft and sign an escritura pública de constitución (public deed of incorporation) in front of a Spanish notary public (notario)
- Apply for an NIF (número de identificación fiscal, or fiscal identity number)
- File the appropriate forms at your nearest Registro Mercantil (business registry) office
- Register for taxes and social security with the Agencia Tributaria and Tesorería General de la Seguridad Social (TGSS), respectively
Final Tips for a Successful Move
Moving to a new country can feel overwhelming, but conducting some research beforehand, preparing in advance when possible, and partnering with the right people can make a world of difference.
An immigration attorney, for example, can help you understand the Spanish immigration system, submit a successful visa application, and secure long-term residency in Spain.
For their part, US expats and Spanish tax specialists are crucial in helping you optimize your cross-border tax strategy and fulfill your tax and reporting obligations.
Looking for someone to help you navigate the complex world of US expat tax laws for business owners? We’re tax professionals by trade as well as US expat small business owners — so we’ve got the knowledge, professional background, and first-hand experience to set you up for success.
Schedule your free consultation today!
References
- The ‘six reasons’ so many Americans are moving to Spain as population soars
- ETIAS
- Ministerio de Asuntos exteriores, Unión Europea, y Cooperación
- Spain – Overview
- La ‘ley Mbappé’: el cambio fiscal de Madrid que favorecerá a las rentas altas
- More Americans than Ever Use Beckham Law to Move to Spain
- Setting up a company
- Where in Spain do all the Americans live?
Resources
- Foreigner Identity Number (NIE)
- Register as an Autónomo in Spain
- Certificado Digital (register online with the Spanish tax authority)
- Elección de forma juridical
With Special Thanks
