If you’re a US citizen living in Spain or a green card holder, you need to be aware of the complex rules that govern taxation for expats in the US and in Spain. For instance, you may need to file an IRS Form 1040 by April 15th or October 16th (depending on your filing status). You may also have to report non-US financial assets valued above certain thresholds on a yearly basis, depending on whether you’re considered a bona fide resident of Spain. In addition, you will probably need to pay property taxes and motor vehicle taxes based on your municipality of residence.
In order to minimize your tax liability, you should consult with a Spanish tax expert and an international tax adviser. GD Global Mobility is one such firm that can help you understand the different types of taxation in Spain, and advise on the best way to minimise your liabilities whilst living in Spain.
If your situation requires a more detailed study of your income and expenses, you can enlist the services of an accounting firm that specialises in providing international tax advice to clients from the United States. These companies can assist with all your tax-related needs, including the preparation of the Form 1040, FBAR and Schedule B. They can also provide support with the specialized forms required for international investors and foreign corporations.
It is essential that you file your tax returns on time to avoid penalties and interest charges. In addition, it’s important to keep in mind that the IRS has a streamlined procedure available for those who have failed to file their returns. However, if you don’t have the time to file your tax return, it’s always better to hire a professional. A reputable tax advisor will make sure that you are paying the correct amount of tax.
As a general rule, anyone who spends more than 183 days in Spain during the fiscal year is considered a tax resident of the country. As a result, they are required to submit a Spanish tax return. However, there is a special tax regime for workers displaced to Spain that exempts them from the obligation to submit an inpatriate tax return.
Foreign residents are subject to the same capital gains tax in Spain as citizens and residents. Moreover, the law provides for a deduction against double taxation in case of capital gains obtained from the sale of assets that are connected to a permanent establishment or fixed base in Spain or that are used to carry out business activities or render independent professional services in Spain.
If you’re looking for the right tax advisor to help you get your US taxes in order, consider the services of Strong Abogados. This law firm is a leading provider of tax advice for US expats, with offices in Barcelona, Madrid, and Malaga. They’ll help you stay in compliance with the IRS’s reporting requirements, no matter where you live in the world. tax advisor spain