Essential Financial Planning for U.S. Expats Moving to Spain
Planning a move to Spain as a U.S. citizen involves more than packing your bags; it requires meticulous financial and tax preparation to avoid costly mistakes. In a recent webinar, Alex Radford, a dual-qualified lawyer, and Shane Clark of EuroAmerican Financial Advisors shared crucial advice for U.S. expats navigating this transition.
During the webinar, we covered key points to consider:-
Top Tips for making the Move from the USA to Spain
Start Early – Ideally a Year in Advance:
Begin your planning 6–12 months before your move. This allows time to assess your finances, address tax obligations and ensure a smooth transition. There are tax implications for timing of the move as we discuss in the video:-
Understand Tax Residency Rules:
Spending over 183 days in Spain makes you a Spanish tax resident. You’ll need to pay taxes on worldwide income and assets, so proper planning is crucial to avoid surprises.
Sell U.S. Property Strategically:
If you sell your U.S. property in the same tax year you become a Spanish resident, you could face capital gains tax in Spain. Selling beforehand avoids this issue.
Choose the Right Visa:
Visas like the Digital Nomad Visa offer favourable tax regimes but require specific qualifications. Starting early ensures you have the time to apply.
Plan for Bank Account Closures:
Many U.S. banks, like Wells Fargo, may close accounts when you move abroad. Consider alternatives like Wise or Charles Schwab that cater to expats.
Spanish vs. U.S. Estate Tax:
Spain taxes inheritances individually, unlike the U.S. estate tax. Structuring your assets correctly can save heirs significant taxes.
Collaborate with Experts:
Create a “financial triangle” of experts—a Spanish lawyer, a U.S. CPA, and a financial advisor like EuroAmerican Financial Advisors—to ensure all cross-border aspects are covered.
Moving to Spain as a U.S. expat is an exciting journey, but it requires careful planning to optimise your financial and tax situation. For tailored advice, reach out to our experts, Alex Radford and Shane Clark at EuroAmerican Financial Advisors, who specialise in helping expats navigate the complexities of cross-border living.
Contact the My Lawyer in Spain team to assist with your property and VISA requirements
