US expats in Spain: Taxes, rates, forms, and deadlines

US citizens living in Spain may have to file in both countries for 2025, even when foreign tax credits eliminate most or all US income tax. Spain generally taxes residents on worldwide income, while the United States continues taxing citizens and green card holders under citizenship-based rules.

The following 3 points provide an immediate filing overview:

• Who files in Spain: A person generally becomes a Spanish tax resident after spending more than 183 days in Spain during the calendar year, establishing Spain as the main center of economic interests, or falling within the spouse-and-minor-child presumption.
• Main taxes: Residents may face IRPF income tax, wealth tax, the Solidarity Tax on Large Fortunes, capital gains tax, IVA, inheritance or gift tax, and municipal property tax.
• Main relief tools: The US foreign tax credit, the $130,000 foreign earned income exclusion for 2025, the US–Spain income tax treaty, and Spain’s special inbound-worker regime can reduce double taxation when their requirements are met.

Use the following 4 links to move directly to the most time-sensitive topics:

• Spanish tax residency rules
• 2025 Spanish income-tax rates
• 2026 forms and filing deadlines
• Foreign-account and asset reporting

Americans preparing for a move can use the TFX guide to moving to Spain from the US. Retirees should also review the separate guide to retiring in Spain as a US citizen.

Tax guide for US expats living in Spain

Spain taxation for expats involves 2 independent systems: Spanish residence-based taxation and US citizenship-based taxation. Filing in Spain does not replace Form 1040, and filing Form 1040 does not satisfy Modelo 100, Modelo 210, Modelo 720, or any other Spanish obligation.

Spain taxes for expats generally begin with one question: were you a Spanish tax resident during 2025? A resident normally reports worldwide income through IRPF, while a nonresident usually reports only qualifying Spanish-source income through IRNR.

Spanish taxes for US expats also interact with the US–Spain tax treaty. The treaty assigns or limits taxing rights for specific income categories, but its saving clause generally preserves the United States’ right to tax US citizens.

A taxpayer can often use either the foreign tax credit, the foreign earned income exclusion, or a coordinated combination of relief provisions. The right choice depends on income type, Spanish tax paid, dependents, future carryovers, and US state-residence considerations.

TFX prepares US returns for Americans living abroad and coordinates common international forms, including Form 1116, Form 2555, Form 8938, and FBAR.

Spain taxes 2026: key deadlines, rates, and what you’ll file for tax year 2025

The 2025 Spain tax year ran from January 1 through December 31, 2025. Resident income-tax returns can be filed online from April 8 through June 30, 2026, but the deadline is June 25 when payment is made by direct debit.

The main 2026 deadlines range from March 31 for Modelo 720 to July 31 for Modelo 718.

 

The US automatic 2-month extension applies to qualifying taxpayers abroad, but tax owed was still due on April 15, 2026. Form 4868 can extend the filing date to October 15, but it does not extend the payment deadline.

What changed for the 2026 filing season? The following 4 developments may affect a 2025 return:

• The Spanish Renta 2025 online campaign runs from April 8 through June 30, 2026.
• Spain introduced a 2025 employment-income deduction for qualifying taxpayers with employment income below €18,276.
• Madrid’s 50% inheritance and gift-tax bonus for Group III relatives became effective July 1, 2025.
• The IRS introduced Schedule 1-A for new deductions involving qualified tips, overtime, certain vehicle-loan interest, and qualifying taxpayers age 65 or older.

The Spain tax rate depends on the income category and location. General income uses national and autonomous-community scales, savings income reaches 30% above €300,000, and a US-resident nonresident may face a 24% general IRNR rate on applicable Spanish-source income.

Taxes in Spain are not calculated under one universal percentage. The tax system in Spain separates general income, savings income, nonresident income, wealth, property, consumption, gifts, and inheritances into different tax bases or taxes.

 

 

See the TFX overview of foreign-country tax filing deadlines for coordinating Spain’s calendar with other jurisdictions.

Tax in Spain for residents vs foreigners: Spain tax residency rules

Tax in Spain for residents generally covers worldwide income for the full calendar year. A nonresident ordinarily reports only Spanish-source income, although treaty provisions, permanent-establishment rules, property ownership, and the special inbound-worker regime may change which income and forms are relevant.

Spain’s 183-day residency decision flow

Spanish tax residence can arise under 3 domestic tests, not only physical presence. The 183-day test includes sporadic absences unless the taxpayer proves residence elsewhere, while economic interests and the location of a spouse and dependent minor children can also support residence.

Use the following 4 yes-or-no questions to identify the likely filing path:

1. Were you in Spain for more than 183 days during 2025?
   If yes, you are generally treated as resident.
2. Was Spain the main base of your business, work, or economic interests?
   If yes, residence can arise even without 184 physical days.
3. Did your non-separated spouse and dependent minor children habitually live in Spain?
   If yes, a rebuttable presumption of Spanish residence may apply.
4. Can you document tax residence in another country?
   A foreign tax-residence certificate and detailed travel records may be necessary when Spain counts sporadic absences.

 

 

A Spanish resident normally faces worldwide taxation, while a US-resident nonresident generally faces Spanish tax only on qualifying Spanish-source income.

 

The tax rate in Spain for foreigners cannot be determined from nationality alone. A US citizen who is Spanish resident may pay progressive IRPF rates, while a US resident who owns a Spanish rental property commonly falls under nonresident rules.

Read the TFX comparison of residents, nonresident citizens, and noncitizens for the separate US classifications.

Center of economic interests and family presence

Spain may treat a person as resident when the main base of economic activities or interests is located there, even if the taxpayer claims fewer than 184 days. Spain also presumes residence when a non-separated spouse and dependent minor children habitually reside in Spain, although the presumption can be rebutted.

The following 4 records are particularly useful when residence is disputed:

• Daily travel and accommodation records
• Employment agreements and business-location evidence
• Foreign and Spanish tax-residence certificates
• Evidence showing where the taxpayer’s spouse, children, home, and economic activity were based

A treaty tie-breaker may address a person who qualifies as resident under both countries’ domestic laws. The analysis generally considers permanent home, center of vital interests, habitual abode, nationality, and competent-authority procedures in sequence.

Three scenarios worth knowing

Three recurring scenarios account for most US expat filing paths: a Spanish resident, a nonresident with Spanish-source income, and a qualifying inbound worker using Article 93. Each situation changes the taxable income, filing form, available deductions, and most likely compliance error.

The correct return follows residency and regime status, not citizenship alone.

 

A US citizen using Spain’s non-lucrative visa can still become a Spanish tax resident. Visa status and tax residence are separate determinations, as explained in the guide to the Spanish non-lucrative visa for US citizens.

Workers evaluating Article 93 should review the complete TFX explanation of the Beckham Law in Spain before relying on the special rate.

What changes based on your status

Your filing path depends on residency and regime, not just nationality. For 2025, residents generally use Modelo 100, ordinary nonresidents use Modelo 210, and eligible inbound workers use Modelo 151 after making a timely Modelo 149 election.

Residency determines whether worldwide income enters Spain’s tax base and which deductions are available.

 

Spain tax for foreigners therefore covers several distinct systems. Tax in Spain for foreigners should always be analyzed by residence, source of income, property ownership, and special-regime status before applying a percentage.

Spain expat taxes: how IRPF works – general income vs savings income

Expat taxes in Spain separate most resident income into 2 bases. Salary, self-employment income, pensions, and rental profit generally enter the general base, while dividends, interest, and most gains from selling assets generally enter the savings base.

Income tax in Spain is progressive, but the applicable progression depends on classification. General income combines a national scale with the scale of the taxpayer’s autonomous community, while savings income uses a nationwide combined scale reaching 30% above €300,000 for 2025.

General income and savings income use separate bands, so €10,000 of salary is not taxed the same way as €10,000 of dividends.

 

Spain taxes on income therefore require classification before a rate can be estimated. A payment described as a “bonus,” “distribution,” or “investment return” may enter a different base depending on its legal character.

The following 3 classification signals help identify general-base income:

• It is earned through employment or active work.
• It recurs as business, rental, or pension income.
• It is not a dividend, interest payment, or gain arising from transferring an asset.

US rental-property owners should also see how foreign rental properties are reported on a US tax return. Investors can use the TFX guide to capital gains tax in Spain for property and portfolio transactions.

Classifying expat taxes Spain, salary, self-employment income, rent, pensions, and investments correctly is the first step toward coordinating the Spanish return with Forms 1040, 1116, and 2555. Get help filing in Spain.

Start my expat return

Income tax in Spain – IRPF brackets, bands, and rates

Spain’s 2025 resident general-income rates combine a national scale beginning at 9.5% with an autonomous-community scale. The final marginal rate depends on residence, taxable income, allowances, and deductions, so no single Spain tax percentage applies to every resident.

The national portion reaches 24.5% above €300,000, before adding the taxpayer’s regional rate.

 

The autonomous-community portion is added separately. Madrid starts at 8.5%, while Catalonia starts at 9.5% and uses a different set of thresholds. Other communities publish their own scales.

The 2025 savings rate is 19% up to €6,000 and 30% above €300,000.

 

The tax threshold in Spain is not the same as a tax-free band. For 2025, the ordinary employment-income return threshold is generally €22,000 with one payer, but it can fall to €15,876 in specified multiple-payer and other cases. Self-employed taxpayers registered under qualifying Spanish systems generally must file regardless of income.

Income tax brackets Spain – The rates are marginal, meaning only the income inside each band is charged at that band’s rate. Moving into a higher Spain tax bracket does not subject all earlier income to the higher percentage.

Based on our client scenario at TFX: A Madrid resident with a €50,000 general taxable base would produce approximately €7,100.75 under the national scale and €6,377.35 under Madrid’s regional scale, or €13,478.10 before applying personal minimums, family circumstances, deductions, withholding, or other adjustments.

Based on our client scenario at TFX: A resident with €10,000 of taxable dividends would incur €1,140 on the first €6,000 and €840 on the remaining €4,000, producing €1,980 of Spanish savings-base tax before credits or withholding.

Income tax in Spain for foreigners who are resident uses these resident rules. Nonresident US taxpayers ordinarily use IRNR instead, with a general 24% rate on applicable income and special 19% rates for dividends, interest, and gains from transferring assets.

The TFX guide to the best places to live in Spain provides non-tax context when comparing communities.

Madrid tax considerations for US expats – what may differ by region

Madrid taxes include Madrid’s autonomous-community portion of IRPF, regional deductions, inheritance and gift-tax benefits, and special wealth-tax coordination rules. For 2025, Madrid’s regional IRPF scale begins at 8.5% and reaches 20.5% above €57,320.40.

Madrid’s lower regional IRPF bands can produce a smaller pre-deduction liability than Catalonia at the same taxable income.

 

Based on our client scenario at TFX: Using a €50,000 general taxable base and ignoring allowances and deductions, the combined state-plus-Madrid scale produces approximately €13,478.10. The equivalent state-plus-Catalonia calculation produces approximately €14,465.75, a difference of about €987.65.

Madrid also has targeted regional deductions, including deductions connected with rental housing, qualifying investments, family circumstances, and certain moves to depopulation-risk municipalities. Eligibility limits and documentation requirements must be reviewed individually.

The following 3 matters should be confirmed before applying Madrid rules:

• Whether Madrid was the taxpayer’s autonomous-community residence under the applicable day-count and connection rules
• Whether the taxpayer meets the income, age, family, investment, or housing conditions for a regional deduction
• Whether wealth tax, the Solidarity Tax on Large Fortunes, or Madrid’s temporary coordination formula applies

Check your autonomous community: A Madrid address late in the year does not automatically establish Madrid as the correct IRPF community, especially when the taxpayer spent more days elsewhere or changed residence primarily to obtain a lower tax result.

Barcelona tax considerations for US expats – what may differ by region

Barcelona tax calculations use Catalonia’s autonomous-community IRPF scale because Barcelona does not impose a separate city income tax. For 2025, Catalonia’s regional scale begins at 9.5%, reaches 19% above €33,000, and reaches 25.5% above €175,000.

Barcelona income tax means national IRPF plus Catalonia’s regional IRPF component, not a separate municipal salary tax.

 

So, what is the Barcelona tax rate? There is no single rate. The Barcelona tax rate for general income combines national and Catalan marginal bands, while savings income uses the 19%–30% national combined savings schedule.

Income tax Barcelona – A resident’s final bill depends on taxable income, personal and family minimums, deductions, withholding, and the Catalan regional scale. Income tax in Barcelona can therefore differ from Madrid even when 2 taxpayers receive the same salary.

What is the tax rate in Barcelona at €50,000? Before allowances and deductions, the illustrative combined state-plus-Catalonia calculation is approximately €14,465.75. This is not the taxpayer’s final liability because IRPF calculations also apply personal minimums and other adjustments.

Catalonia offers deductions involving qualifying rent, family circumstances, donations, business investment, and other region-specific items. Barcelona residents should verify the 2025 Catalan requirements rather than assuming that a Madrid or national deduction applies.

VAT in Spain – IVA

Spain’s standard IVA rate is 21%, with reduced rates of 10% and 4% for specified goods and services. A freelancer or business may have to register, issue compliant invoices, collect IVA, and file Modelo 303 even when the owner is a US citizen.

The following 4 activities commonly create an IVA review:

• Freelance or consulting services supplied from Spain
• Digital or online services supplied to customers in Spain or the EU
• Product sales, imports, or cross-border EU transactions
• Short-term accommodation or rental activity involving hotel-type services

IVA exposure depends on the activity, customer location, exemption, and place-of-supply rules.

 

Exempt activity does not always mean no compliance duties, and it may restrict recovery of input IVA. Spain permanently placed olive oil within the 4% super-reduced category from January 1, 2025.

Independent workers can review the TFX guide to filing US taxes as an independent contractor. The IRS also maintains an official self-employed individuals tax center.

Wealth tax

Spanish wealth tax is based on qualifying net assets held on December 31, 2025. Under the general state rules, the personal exemption is €700,000 and the main-home exemption can reach €300,000, although autonomous-community rules may change the result.

The following 5 categories commonly enter the calculation:

• Real estate, including property outside Spain for residents
• Bank and brokerage accounts
• Shares, business interests, and investment funds
• Insurance, annuity, vehicle, art, and other qualifying property
• Debts directly connected with taxable assets, when deductible under the applicable rules

Modelo 714 may be required when tax is due or gross assets exceed €2 million, even when exemptions reduce the final liability.

 

Madrid’s historic 100% wealth-tax rebate cannot simply be applied without adjustment while the Solidarity Tax on Large Fortunes remains in effect. For 2025, Madrid uses a temporary formula coordinating the 2 taxes.

Based on our client scenario at TFX: A resident with €1.4 million of taxable investments, a €500,000 qualifying main home, and €100,000 of deductible debt starts with €1.8 million after the €300,000 home exemption and debt. The applicable personal exemption and regional rules must then be applied before estimating tax.

Americans considering real estate should read the TFX guide explaining whether Americans can buy property in Spain.

Inheritance and gift tax

Spain generally taxes the recipient of an inheritance or gift, and the result depends heavily on kinship, asset location, residence, prior wealth, and autonomous-community law. An inheritance return is generally due within 6 months of death, while gift deadlines are substantially shorter.

A spouse, child, and unrelated heir may owe materially different tax on the same inheritance.

 

Madrid grants a 99% succession-tax bonus to qualifying spouses, descendants, and ascendants. For deaths and qualifying transfers from July 1, 2025, Madrid increased the Group III bonus to 50%, including siblings, aunts, uncles, nieces, nephews, and specified relatives by affinity.

Catalonia grants a 99% succession bonus to a surviving spouse, while bonuses for other relatives vary according to relationship, taxable base, and other factors.

An inherited foreign account can create 3 separate issues: Spanish inheritance tax, Spanish foreign-asset reporting, and US reporting. The TFX guides to foreign inheritances and Form 3520 reporting explain the US side.

The IRS provides the official Form 3520 filing page. Receiving an inheritance is not automatically US taxable income, but foreign gifts and bequests above applicable reporting thresholds may require disclosure.

Property tax – IBI

IBI is an annual municipal property tax based primarily on cadastral value, not the property’s market value or purchase price. The owner recorded on January 1 is generally the liable taxpayer for that year, although billing periods and rates differ by municipality.

The following 4 charges should not be confused:

• IBI: A municipal ownership tax based on cadastral value
• Wealth tax: A personal tax based on qualifying net wealth
• Rental income tax: IRPF or IRNR imposed on rental income
• Capital gains tax: Tax arising when the property is sold at a gain

Based on our client scenario at TFX: A homeowner who occupies a Madrid apartment may owe IBI and potentially wealth tax, but no rental-income tax. A landlord may owe IBI plus Spanish tax on rent and must separately report the property and income on applicable US forms.

Local rates generally fall within statutory parameters, including a base urban-property range of 0.4% to 1.10%, although legally permitted adjustments can affect the municipal rate.

Exit tax in Spain – when US expats may owe tax on leaving

Spain’s exit tax can apply when a long-term Spanish resident ceases residence while holding shares or equity interests with substantial unrealized gains. The person generally must have been resident for at least 10 of the previous 15 tax years and meet the applicable €4 million or €1 million ownership test.

The following 2 alternative value tests can bring shares within the regime:

• The total market value of relevant shares or interests exceeds €4 million.
• The taxpayer owns more than 25% of an entity and that holding exceeds €1 million in market value.

Spanish exit tax and the US expatriation tax apply to different people and different events.

 

Moves to another EU or qualifying EEA country can receive special timing treatment when reporting and information requirements are met. A move from Spain to the United States does not receive that EU/EEA treatment.

Based on our client scenario at TFX: A taxpayer resident in Spain for 12 of the last 15 years owns 30% of a private company worth €4 million, making the holding worth €1.2 million. The 25%-plus and €1 million test may apply even though total shareholdings do not exceed €4 million.

The US rules are explained in the TFX guides to the US exit tax and renouncing US citizenship. Official requirements are available on the IRS pages for the expatriation tax and Form 8854.

Moving out of Spain can affect residence, unrealized gains, foreign tax credits, entity reporting, and the final filing sequence in both countries. Talk to an expat specialist

Review my departure filing

Capital gains tax

A Spanish resident’s gains from selling shares, funds, real estate, cryptocurrency, or other investments generally enter the savings base and are taxed at 19% to 30% for 2025. The gain is ordinarily based on sale proceeds less adjusted acquisition cost and qualifying transaction expenses.

Most resident disposal gains use the 19%–30% savings bands, while nonresident property sales involve separate IRNR rules.

 

Based on our client scenario at TFX: A taxpayer sells Spanish property for €350,000 after buying it for €250,000, paying €20,000 of qualifying acquisition and improvement costs, and €10,000 of sale expenses. The preliminary gain is €70,000 before applying exemptions, depreciation adjustments, or other special rules.

A nonresident buyer of Spanish real estate generally withholds 3% of the purchase price and remits it through Modelo 211. The seller then reconciles the actual gain through Modelo 210.

Spain permits cross-compensation between negative investment-income balances and qualifying gains, subject to a 25% limit, with unused amounts generally carried under the applicable multi-year rules.

Based on our client scenario at TFX: A resident has €10,000 of net taxable gains and a €4,000 negative investment-income balance. Up to €2,500, or 25% of the positive gain balance, can be used in that cross-category compensation step.

The following 6 records support a defensible gain calculation:

• Purchase contract and closing statement
• Evidence of taxes and acquisition costs
• Improvement invoices and payment proof
• Sale contract and selling-expense invoices
• Currency conversion records for US reporting
• Prior depreciation and rental records

See the TFX guide to capital gains for US expats for the parallel US basis and currency rules.

Solve your tax question – ask professionals

A cross-border question often affects at least 2 returns and several reporting forms. A 30-minute review of residence, income sources, assets, and prior filings can identify whether the issue belongs on Modelo 100, Form 1040, Form 1116, Form 2555, Form 8938, or FBAR.

Ask my tax question

Spain taxes on foreign income – what is taxable for US expats?

Spanish residents generally report worldwide income regardless of where the payer, bank, brokerage, property, or employer is located. For 2025, this includes US salary, self-employment income, pensions, dividends, interest, rent, and gains unless Spanish law or a treaty provides a specific exemption or limitation.

The following 7 foreign-income categories require review:

• Salary and employment benefits
• Freelance and business income
• US Social Security and private pensions
• Dividends and fund distributions
• Bank and bond interest
• Rental income from US or other foreign property
• Capital gains from shares, funds, property, or digital assets

Spain tax income classification matters because salary and rent commonly enter the general base, while dividends, interest, and transfer gains commonly enter the savings base.

Foreign income is generally taxable for a Spanish resident unless a domestic exemption or treaty provision changes the result.

 

A US citizen with a Spanish employer and a US brokerage account generally reports salary and investment income in both systems. Spanish tax paid on foreign-source or Spanish-source income may support a US Form 1116 credit, depending on sourcing, category, and treaty resourcing rules.

TFX explains where foreign income appears on Form 1040. The distinction between earned and unearned income affects Form 2555 eligibility and credit categories.

What counts as taxable income?

Spanish IRPF defines income broadly to include returns from work, capital, economic activities, gains and losses, and statutory income imputations. The source country does not by itself remove the income from Spain’s 2025 resident return.

The following 4 definitions cover the most common income:

• Wages: Salary, bonuses, benefits, equity compensation, and other employment remuneration
• Business income: Net income from freelance, professional, and commercial activity
• Investment income: Interest, dividends, fund distributions, and qualifying insurance returns
• Property income: Rent, deemed income from specified property, and gains on sale

Use the following 5 yes-or-no questions before omitting foreign income:

1. Did you receive or become entitled to the amount during 2025?
2. Were you a Spanish tax resident in 2025?
3. Was the amount salary, rent, interest, a dividend, a pension, or a gain?
4. Does a specific Spanish exemption apply?
5. Does the treaty alter Spain’s taxing right or provide credit relief?

Interest on a US savings account, dividends reinvested automatically, and rent retained by a US property manager are common omissions. Non-cash receipt or foreign retention does not necessarily prevent Spanish recognition.

Spain taxes on foreign income – which base does it enter?

Foreign income uses the same 2-base classification framework as comparable Spanish income. For 2025, wages, business profit, pensions, and net rent normally enter the general base, while dividends, interest, and gains from transferring assets normally enter the savings base.

Classification determines whether national-and-regional rates or the 19%–30% savings schedule applies.

 

Foreign dividends require separate US and Spanish reporting. Read the TFX guide to taxation of foreign dividends for Form 1040, Form 1116, and entity-level concerns.

What income is exempt?

Spain provides specific exemptions rather than a general exemption for “foreign income.” One relevant provision can exempt up to €60,100 of qualifying employment income for work physically performed abroad, but the work, beneficiary, foreign-tax system, and documentation tests must all be satisfied.

The following 4 exemption or relief categories may be relevant:

• Qualifying foreign-work income under IRPF Article 7.p, capped at €60,100 annually
• Treaty provisions assigning exclusive taxing rights to another country
• Domestic exemptions for specifically listed payments or gains
• Foreign-tax credits that reduce Spanish tax without making the income exempt

Income exempt in Spain is not automatically exempt in the United States. A taxpayer may still need Form 1040, Form 1116, Form 2555, or an information return.

The IRS explains the 2025 $130,000 exclusion in its official Form 2555 instructions. Check the treaty article and return instructions before treating any amount as exempt.

Social Security in Spain – expat basics

The US–Spain totalization agreement generally assigns one country’s Social Security system to covered work and can prevent 2 sets of contributions on the same earnings. A temporary employee assignment or transferred self-employment activity of 5 years or less may remain under the original system when the conditions are met.

Employees, self-employed workers, and transferees can follow different coverage rules.

 

For 2025, an ordinary Spanish employee’s common-contingencies contribution is 4.70%, and the employee share of the 0.90% Intergenerational Equity Mechanism is 0.15%. Unemployment and training contributions may also apply, so 4.85% is not the complete payroll withholding rate.

Based on our client scenario at TFX: A US employee transferred to Spain for 3 years remains on the US employer’s payroll and receives a valid US certificate of coverage. The certificate can document exemption from Spanish contributions on the covered earnings during the qualifying assignment.

TFX covers certificates of coverage and A1 forms and answers common Social Security questions for expats.

The IRS pages on Social Security and Medicare taxes and totalization agreements provide the US filing framework.

Top deductions and write-offs for US citizens in Spain – 2025/2026

Spanish deductions fall into at least 3 groups: reductions that decrease taxable income, deductions that decrease calculated tax, and autonomous-community benefits. Eligibility depends on residence, income source, region, family circumstances, documentation, and whether the expense is connected with taxable activity.

A deduction’s value depends on whether it reduces the tax base or the final tax.

 

US and Spanish deductions do not automatically match. A Spanish charitable deduction may not qualify on US Schedule A, and a US itemized deduction may have no Spanish equivalent.

The TFX comparisons of standard and itemized deductions and US deductions for charitable donations explain the US side. Official US itemized-deduction rules appear in the Schedule A filing page.

The following 5 records should be retained:

• Invoices identifying the customer, supplier, date, and service
• Bank or card evidence showing payment
• Donation certificates
• Mortgage, lease, and property-expense records
• Regional-deduction documents proving residence and eligibility

Resident deductions

Spanish residents may claim qualifying employment, business, property, investment, family, donation, and regional deductions. Some reduce the general or savings base, while others reduce the calculated tax, so a €1,000 deduction does not always save €1,000.

The following 5 categories commonly require review:

• Statutory employment expenses and qualifying professional fees
• Ordinary and necessary business expenses for self-employed activity
• Qualifying rental-property interest, repairs, taxes, insurance, and management expenses
• Pension contributions and personal or family reductions
• National and autonomous-community tax credits

Based on our client scenario at TFX: A resident landlord reports €18,000 of gross rent and €6,000 of qualifying expenses. The preliminary net rental income is €12,000 before applying any available reduction, allocation rule, depreciation, or limitation.

US residents should separately review Schedule A itemized deductions for expats.

Nonresident deductions

A US-resident nonresident is generally taxed on a gross basis for many Spanish-source income items and does not receive the same deductions available to EU or qualifying EEA residents. The distinction is especially important for rental property because the ordinary US-resident IRNR rate is commonly 24%.

US residents should not assume that Spanish rental expenses reduce Modelo 210 income.

 

Based on our client scenario at TFX: A US resident receives €12,000 of Spanish rent and pays €5,000 of expenses. Under the ordinary non-EU/EEA treatment, the starting tax base may remain €12,000 rather than €7,000, subject to the exact property and treaty facts.

This resident/nonresident distinction is also relevant to Form 1040-NR and the TFX guide to US resident and nonresident alien tax rules.

Regional deductions

Spain’s 17 autonomous communities can provide different deductions for rent, children, disability, donations, education, investment, rural relocation, and other priorities. A benefit listed for Madrid or Catalonia cannot automatically be claimed by a resident of Valencia, Andalusia, or another community.

The following 3 checks should be made for each regional deduction:

• Confirm the autonomous community governing the 2025 return.
• Confirm income, age, household, property, or investment limits.
• Retain the required certificate, contract, invoice, or registration evidence.

Madrid includes deductions tied to specified investments and housing situations, while Catalonia includes its own rent, donation, family, and investor provisions. The tax benefit can therefore differ even when national taxable income is identical.

Regional warning: Verify the 2025 manual for the taxpayer’s autonomous community before claiming a deduction. A deduction shown in a prior-year return may have a new limit, documentary condition, or eligibility rule.

Spain pension basics – what to know

Spain’s ordinary retirement age for 2025 was 65 for a person with at least 38 years and 3 months of contributions, or 66 years and 8 months with fewer contributions. Tax treatment is separate from benefit eligibility and must also account for the US–Spain treaty.

Public, private, and foreign pensions can follow different treaty and reporting rules.

 

A rollover that is tax-deferred in the United States may not receive identical treatment in Spain. Obtain advice before transferring, surrendering, converting, or taking a lump sum from a US or Spanish pension.

Read the TFX guide addressing whether a foreign pension is taxable in the United States. Retirees can also use the country-specific guide to retiring in Spain.

The following 3 questions identify the documents needed:

• Are you contributing to a pension?
• Are you receiving regular or lump-sum benefits?
• Are you transferring or rolling funds between plans?

Smart tax credits for US expats in Spain

Tax credits are often more valuable than deductions because they reduce calculated tax rather than taxable income. A US expat may use Spain’s Article 80 foreign-tax credit, the US Form 1116 credit, national or regional donation credits, and qualifying investment credits, but each system applies separate limitations.

The correct credit depends on which country taxed the income first and which country has primary taxing rights.

 

A deduction reduces the amount exposed to tax, while a credit generally reduces the tax itself. Compare the foreign tax credit with the foreign earned income exclusion before making a Form 2555 election.

The IRS provides official rules for the foreign tax credit and education credits.

International double-tax relief – IRPF Article 80

Spain’s Article 80 credit generally allows the lower of 2 amounts: foreign tax actually paid on qualifying foreign income or the Spanish tax attributable to that income. The limitation prevents a high foreign rate from offsetting Spanish tax on unrelated income.

The following 4 conditions ordinarily require evidence:

• The income is included in the Spanish tax base.
• A foreign income tax of an identical or analogous nature was actually paid abroad on the same income, and the taxpayer retains evidence of that payment.
• The foreign tax relates to the same income.
• The claimed credit does not exceed Spain’s attributable-tax limit.

Spain’s credit and the US Form 1116 credit operate in opposite directions depending on source and treaty rules.

 

Based on our client scenario at TFX: Spain calculates €4,000 of tax attributable to US-source income, while the taxpayer paid €5,200 of qualifying US tax. The Spanish credit is generally capped at €4,000, subject to treaty sourcing, tax character, and Article 80 requirements.

TFX explains how double taxation works and ways to reduce it.

Start-up investment deduction – 50% up to €100,000

A qualifying investment in a new or recently created Spanish company can generate a 50% national IRPF deduction on an annual investment base of up to €100,000. The maximum headline deduction is therefore €50,000, but company, ownership, timing, and certification requirements apply.

The following 4 eligibility areas must be documented:

• The company meets the qualifying entity and activity conditions.
• The shares are acquired at formation or within the permitted period.
• Ownership and related-party limits are satisfied.
• The taxpayer obtains the required company certificate.

The maximum investment base is €100,000, producing a maximum headline deduction of €50,000.

 

Based on our client scenario at TFX: A qualifying taxpayer invests €80,000 in an eligible start-up and receives the required certificate. The preliminary national deduction is €40,000, subject to all statutory limits and interaction with other deductions.

Business owners should review the TFX guide to choosing business structures abroad. The IRS provides separate US guidance through its businesses topic page and credits and deductions portal.

Donations under Law 49/2002

For 2025, an individual can generally deduct 80% of the first €250 donated to a qualifying Law 49/2002 organization and 40% of the remaining qualifying base. The rate above €250 can rise to 45% after qualifying donations to the same organization for 3 consecutive years.

A €1,000 first-year qualifying donation produces a preliminary €500 deduction.

 

The following 4 items should appear in the donor’s records:

• Organization name and tax identification
• Donor name and tax identification
• Donation amount and date
• Confirmation that the donation was irrevocable and qualifies under the law

Based on our client scenario at TFX: A first-time €1,000 qualifying donation produces €200 on the first €250 and €300 on the remaining €750, for a total preliminary deduction of €500.

A payment for an ordinary product, event ticket, or commercial service is not automatically a donation. Official US charitable rules are available through the IRS donations-to-charity guidance.

Noncash donors can also review the TFX guide to Form 8283 for noncash charitable contributions.

Home purchase deduction – transitional only

Spain’s national home-purchase deduction was generally abolished from January 1, 2013. Transitional relief can remain available when the home or qualifying construction was acquired before that date, and the taxpayer had already qualified under the previous rules.

NOTE! Buying a Spanish home in 2025 does not ordinarily create the former national home-purchase deduction.

The following 3 conditions should be checked:

• The legal acquisition or qualifying construction began before January 1, 2013.
• The taxpayer qualified for and used the deduction under the transitional rules.
• The current payments relate to the qualifying pre-2013 acquisition or work.

Based on our client scenario at TFX: A taxpayer bought a main home in 2011, claimed the deduction on an earlier Spanish return, and continued paying the original mortgage during 2025. Transitional treatment may continue, while a neighbor who bought in 2020 generally cannot claim it.

US mortgage rules are discussed in the TFX guide to the foreign mortgage interest deduction.

Regional add-ons

Autonomous-community deductions can change final IRPF even when the national calculation is identical. For 2025, Madrid and Catalonia each provide separate deductions, thresholds, and documentation rules involving housing, family, disability, donations, education, investment, and other regional priorities.

The following 4 regional add-ons commonly warrant review:

• Tenant or housing deductions
• Birth, adoption, childcare, and dependent deductions
• Donations to regionally qualifying organizations
• Investment or rural-relocation incentives

A taxpayer should identify the correct autonomous community before preparing the deduction section. Residence cannot be shifted on paper solely to obtain a lower result when the factual connections remain elsewhere.

US–Spain tax treaty – what it means now

The US–Spain income-tax convention entered into force on November 27, 1990, after ratification instruments were exchanged. Many provisions became effective for tax periods beginning January 1, 1991, and the 2013 protocol entered into force on November 27, 2019.

The treaty can determine which country has primary taxing rights, limit withholding, provide residence tie-breakers, permit foreign-tax credits, and offer a mutual-agreement procedure. It generally does not eliminate the obligation of a US citizen to file Form 1040.

Taxes in Spain vs USA differ principally because Spain uses residence and source rules while the United States also taxes citizens and green card holders on worldwide income. The treaty coordinates those systems but does not merge them.

See the broader TFX guide to US income-tax treaties. The IRS maintains the official Spain tax treaty documents.

Common treaty articles US expats in Spain actually use

At least 8 treaty articles commonly affect US expats, including residence, real estate, dividends, interest, gains, employment, pensions, and double-tax relief. The applicable outcome depends on citizenship, residence, source, beneficial ownership, and the treaty’s saving clause.

The treaty usually allocates taxing rights or limits tax rather than making income disappear from both returns.

 

Article 16’s employment exception generally requires no more than 183 days in the work country, payment by a nonresident employer, and no cost borne by a local permanent establishment. All 3 conditions must be met.

Article 24 can be especially important when ordinary domestic sourcing rules would prevent the correct country from granting a foreign tax credit. Treaty resourcing positions can require Form 8833 or additional disclosure depending on the claim.

Read TFX’s explanation of when an expat must file a US tax return.

What the treaty does not do

The treaty does not cancel 2025 Form 1040 filing, erase Spanish domestic filings, correct a missed FBAR, or automatically remove tax from both countries. The saving clause generally permits the United States to tax its citizens as though much of the treaty did not exist, subject to listed exceptions.

The following 5 issues remain even when treaty relief is available:

• US citizens generally continue filing Form 1040.
• Spanish residents generally continue filing Modelo 100.
• FBAR and Form 8938 remain separate information-reporting systems.
• Modelo 720 remains a separate Spanish information return.
• Relief may require elections, disclosure, residence certificates, or foreign-tax-credit calculations.

A taxpayer with missing returns should not simply write “treaty exempt” on a new return. The proper correction may involve an amended filing, delinquent international forms, or an IRS compliance procedure.

Behind on US returns while living in Spain? See how Streamlined filing can help eligible expats catch up.

Learn more

Top tax forms US expats use in Spain

A US expat may need forms in 2 countries for the same 2025 income and assets. The following filing map shows what to expect, but it does not replace a form-by-form analysis of residence, ownership, account values, income categories, or entity interests.

Form 1040 and Modelo 100 report income, while FBAR, Form 8938, and Modelo 720 primarily report accounts or assets.

 

The 2025 FEIE is $130,000 per qualifying person. Form 8938 thresholds for qualifying taxpayers abroad begin above $200,000 at year-end or $300,000 at any point for an unmarried or separate filer, and above $400,000 or $600,000 for a joint return.

The IRS provides the official Form 1040 page. TFX’s expat IRS form checklist and FinCEN Form 114 guide provide practical filing context.

How to file Spanish taxes from the US as an expat

A taxpayer can generally file a Spanish return remotely through the AEAT electronic system using an accepted digital certificate, Cl@ve, reference access where available, or an authorized representative. Modelo 100 for 2025 is submitted through Renta WEB or the new integrated Renta Directa access path.

The following 6-step workflow keeps the Spanish and US positions aligned:

1. Confirm Spanish residence or nonresidence.
   Determine whether Modelo 100, Modelo 151, or Modelo 210 is the main return.
2. Gather Spanish and foreign records.
   Obtain payroll certificates, bank statements, brokerage reports, pension statements, rental records, asset values, and prior returns.
3. Convert foreign amounts consistently.
   Retain the exchange-rate source and calculation used for each return.
4. Prepare the Spanish return first when Spain is the primary taxing country.
   This commonly provides the final Spanish tax amount needed for Form 1116.
5. Submit electronically or through a representative.
   An authorized representative with the relevant 100P or general authority can use Renta WEB for the taxpayer.
6. Complete the US return and information reports.
   Reconcile Spanish income, tax, accounts, entities, pensions, and assets with Forms 1040, 1116, 2555, 8938, and FBAR.

Missing prior US returns? Review the Streamlined filing path before preparing your 2025 Spain-related return.

Learn more

The practical filing sequence runs from document collection through Spanish filing, payment proof, and US reconciliation.

 

The following 4 remote-filing bottlenecks should be resolved early:

• Missing NIE or electronic-access credentials
• Foreign statements that do not identify annual income or maximum balances
• Inconsistent euro and dollar conversion methods
• No proof showing when foreign tax was paid or accrued

A professional representative is not legally required for every return, but authorization can be useful when the taxpayer lacks Spanish electronic access or has left Spain. AEAT allows Renta WEB access through qualifying powers of attorney.

Use TFX’s document checklist for expat tax preparation before uploading records. US return support is available through our expat tax return service.

Spain tax forms and deadlines – 2026

Spain’s 2026 filing calendar includes annual, quarterly, and transaction-based returns. The main resident deadline is June 30, 2026, but Modelo 720 ended March 31, Modelo 718 ends July 31, and nonresident or self-employed filings follow separate periods.

The form and deadline depend on residence, activity, assets, and income type.

 

The filing order can be summarized in the following 3 steps:

1. File information returns and quarterly obligations when due.
2. Complete the Spanish annual return and determine the final Spanish tax.
3. Use Spanish return and payment records to finish the US foreign-tax-credit calculation.

Modelo 100 – resident income-tax return

Modelo 100 is the core annual IRPF return for an ordinary Spanish resident. The 2025 return can be filed from April 8 through June 30, 2026, with June 25 as the standard direct-debit cutoff for a balance due.

Modelo 100 combines personal information, worldwide income, deductions, credits, withholding, and the final resident-tax calculation.

 

The following 7 items should be checked before submission:

• All Spanish and foreign wages
• Business and freelance income
• Rent and property details
• Interest and dividends
• Sales and capital gains
• Pensions and Social Security
• Foreign tax, withholding, deductions, and regional benefits

The ordinary employment-income filing thresholds include €22,000 with one payer and €15,876 in specified lower-threshold cases. Filing can still be beneficial or mandatory for other reasons, including self-employment, deductions, refunds, or other income.

The Spain tax year for an individual ordinarily follows the calendar year, so the return filed in spring 2026 reports income received or recognized from January 1 through December 31, 2025.

Modelo 130 and Modelo 131 – quarterly self-employed prepayments

Modelo 130 generally applies to self-employed individuals using direct estimation, while Modelo 131 applies to qualifying activities under objective estimation. Both forms make quarterly prepayments toward annual IRPF rather than replacing the year-end Modelo 100 return.

Modelo 130 follows actual direct-estimation results, while Modelo 131 follows the objective or módulos system.

 

The following 4 ordinary filing periods apply:

• April 1–20 for the first quarter
• July 1–20 for the second quarter
• October 1–20 for the third quarter
• January 1–30 for the fourth quarter

Based on our client scenario at TFX: A consultant using direct estimation calculates cumulative 2025 net income and instalments through Modelo 130. Payments made during the year are credited on Modelo 100 rather than treated as an additional separate income tax.

US self-employed taxpayers may also need Schedule C and Schedule SE. Read the TFX tax guide for self-employed expats and the official IRS Schedule C page.

Modelo 714 – wealth-tax return

Modelo 714 reports Spanish wealth-tax information and liability based on assets held at December 31, 2025. Filing can be required when tax is due or when gross assets exceed €2 million, even if exemptions or bonuses reduce the tax payable.

Modelo 714 uses an asset-and-liability balance sheet rather than annual income.

 

The following 6 asset groups commonly require valuation:

• Spanish and foreign real estate
• Bank accounts and deposits
• Listed and private-company shares
• Investment funds and securities
• Insurance and annuity rights
• Vehicles, art, jewelry, and other taxable property

A taxpayer can therefore have no Modelo 100 income from an asset yet still report its December 31 value on Modelo 714.

Modelo 718 – Solidarity Tax on Large Fortunes

Modelo 718 applies to the temporary Solidarity Tax on Large Fortunes when net taxable wealth exceeds €3 million after applying the tax’s rules. The 2025 return is due July 31, 2026, with direct debit available through July 28.

Wealth tax and the solidarity tax are coordinated, but they are not the same return.

 

Based on our client scenario at TFX: A taxpayer’s net wealth after applicable exemptions is €2.7 million. Modelo 714 may still be required based on gross assets or regional rules, but the €3 million Modelo 718 threshold is not crossed.

Asset location, residence, treaty provisions, regional wealth-tax rules, and tax already payable under Modelo 714 affect the final result.

Modelo 720 – foreign-assets declaration

Modelo 720 is an information return for specified foreign accounts, securities, insurance, income rights, and real estate. The initial threshold is generally more than €50,000 within any of its 3 principal reporting categories, and the 2025 filing deadline was March 31, 2026.

The €50,000 threshold is tested separately for each reporting category, not across every foreign asset combined.

 

After an initial filing, another filing is generally required when a category increases by more than €20,000 compared with the value supporting the last return, or when specified ownership or asset relationships end.

The following 6 records should be gathered:

• Institution and account identification
• Ownership and signature-authority details
• December 31 balances
• Average fourth-quarter account balances
• Acquisition values for investments and property
• Dates an account, asset, or ownership interest was opened, acquired, sold, or closed

 

 

Compare Spain’s requirements with the TFX guides to Form 8938 and FBAR versus Form 8938.

Modelo 210 – nonresident income-tax return

Modelo 210 reports specified Spanish-source income earned by a person who is not a Spanish tax resident and has no permanent establishment. It commonly covers Spanish rent, imputed income from an unoccupied property, a property sale, or other taxable Spanish-source income.

The Modelo 210 deadline changes according to the income and whether the result is payable, refundable, or zero.

 

Since income arising from January 1, 2024, rental income can be grouped annually, with filing and payment during the first 20 calendar days of January in the following year. A filer can instead report separate accruals under the applicable quarterly pattern.

A US resident’s general nonresident rate is ordinarily 24% rather than the 19% EU/EEA rate. Dividends, interest, and gains arising from transfers generally have a 19% special rate, subject to exemptions and treaty limits.

Strategies for living – and saving – in Spain

Effective cross-border strategy begins before changing residence, starting work, realizing gains, receiving a pension distribution, or electing the Beckham regime. A decision made during 2025 can affect Spanish tax, US tax, credits, reporting, and cash flow through at least the October 15, 2026 extended filing date.

The best strategy changes the timing, classification, or available relief before the taxable event occurs.

 

Expat taxes – Spain decisions should not be postponed until the annual return is prepared. Residence, compensation structure, investment sales, pensions, business entities, and property transactions often cannot be retroactively reorganized.

The TFX guide to saving money on an American expat return provides additional US-side actions.

Trusts

A trust can create reporting in both countries even when it distributes no cash during 2025. Spain does not necessarily follow the US grantor-versus-nongrantor classification, while the United States may require Forms 3520, 3520-A, 8938, or other disclosures.

The following 6 documents should be collected before analyzing a trust:

• Trust deed and amendments
• Settlor, trustee, protector, and beneficiary details
• Annual financial statements
• Contribution and distribution records
• Asset-location information
• Prior Spanish and US filings

Trust warning: Do not assume that a US revocable living trust is ignored in Spain merely because it is disregarded for US income-tax purposes. Ownership, income, gifts, inheritance, and distributions require a Spanish-law analysis.

TFX explains foreign grantor trusts. The official IRS pages for Form 3520-A and Form 8854 address separate US reporting contexts.

Exchange controls and moving money

Spain does not impose a general prohibition on ordinary bank transfers, but banks can request source-of-funds evidence and certain physical movements of cash or equivalent payment instruments require advance declaration. The threshold is €10,000 for entry into or exit from Spain and €100,000 for movement within Spain.

The following 4 practices reduce payment and verification problems:

• Use regulated bank transfers rather than transporting large cash amounts.
• Keep sale agreements, tax returns, inheritance documents, and bank statements proving the source.
• Retain exchange-rate and transfer-fee records.
• File the required declaration before physically moving reportable payment instruments.

The following 3 practices should be avoided:

• Splitting transfers solely to avoid bank review
• Describing a gift, loan, sale, or distribution inaccurately
• Assuming a bank transfer satisfies tax or asset-reporting requirements

A transfer between the taxpayer’s own US and Spanish accounts is not automatically taxable income, but the underlying source and both accounts may have reporting consequences. See the TFX guide to foreign-asset disclosure and the official IRS Form 8938 page.

Beckham regime

Spain’s Article 93 special regime can allow eligible workers, professionals, entrepreneurs, investors, and qualifying family members to use modified nonresident-tax rules for the arrival year and 5 following tax years. General covered income is taxed at 24% up to €600,000 and 47% above that amount.

The regime can reduce tax for some inbound workers but is not automatically better for every expat.

 

The following 4 profiles should review eligibility promptly:

• Employees relocating under a Spanish employment arrangement
• Qualifying remote workers
• Highly qualified professionals working with eligible emerging companies
• Qualifying entrepreneurs, investors, and certain family members

Modelo 149 must generally be filed electronically within 6 months of the qualifying activity start date shown in Social Security or equivalent records.

A lower headline rate can be offset by losing ordinary deductions, family allowances, or favorable treatment of foreign income. Use the detailed TFX Beckham Law guide before electing.

Reporting foreign assets in two countries

A Spanish resident with US accounts may have 3 separate 2025 information-reporting systems: Modelo 720, Form 8938, and FBAR. Each return uses its own asset definitions, ownership rules, thresholds, exchange rates, and filing platform, so filing one does not satisfy another.

Modelo 720 begins above €50,000 by category, FBAR begins above $10,000 across accounts, and Form 8938 uses higher residence-and-filing-status thresholds.

 

Overlap is common. A Spanish bank account can appear on FBAR and Form 8938, while a US account may appear on Modelo 720 but not FBAR because it is not foreign from the US perspective.

Spain reporting rules – Modelo 720

Modelo 720 is informational rather than an income-tax return. A taxpayer can owe no Spanish tax on an account yet still have a March 31 filing obligation because the account, securities, insurance, or real-estate category exceeds €50,000.

The following 3 principal reporting groups apply:

• Accounts held with financial institutions outside Spain
• Securities, investment interests, insurance, and income rights outside Spain
• Real estate and rights over real estate outside Spain

The following 5 items should be ready before filing:

• Account or asset identification
• Country and institution
• Ownership percentage or authority
• Applicable annual and year-end values
• Acquisition, disposal, opening, or closing dates

Modelo 720 does not report foreign cryptocurrency. Spain uses the separate Modelo 721 framework for qualifying foreign virtual-currency holdings.

US reporting rules – Form 8938

Form 8938 is attached to a timely filed Form 1040 and reports specified foreign financial assets when the applicable threshold is exceeded. A qualifying unmarried taxpayer abroad uses $200,000 at year-end or $300,000 at any time, while a joint return uses $400,000 and $600,000.

The following 5 asset types commonly require review:

• Foreign bank and brokerage accounts
• Foreign stocks held outside a US financial account
• Interests in foreign entities
• Foreign pension and deferred-compensation interests
• Foreign contracts or financial instruments

Form 8938 and FBAR overlap but neither replaces the other. Form 8938 is part of the income-tax return and covers broader specified assets, while FBAR is filed separately with FinCEN and focuses on foreign financial accounts.

The official IRS Form 8938 and FBAR comparison explains the differences.

FBAR reporting – FinCEN Form 114

FBAR is required when a US person’s aggregate foreign financial accounts exceed $10,000 at any time during 2025. The test includes jointly owned accounts and certain accounts over which the taxpayer has signature or other authority, even when no income is earned.

The $10,000 FBAR threshold applies to all reportable foreign accounts combined, not to each account separately.

 

The following 4 filing steps are required:

• Identify every reportable foreign account.
• Determine each account’s maximum 2025 value.
• Convert values using the required year-end Treasury exchange rate.
• File electronically through FinCEN rather than with Form 1040.

FBAR is separate from the income-tax return and uses a different filing system. The due date was April 15, 2026, with an automatic extension through October 15, 2026.

FinCEN requires records including the account name, number, financial institution, account type, and maximum value to be retained for 5 years.

Common reporting mistakes

Seven recurring errors account for a large share of foreign-asset filing problems. They involve applying the wrong threshold, omitting authority-only accounts, using year-end rather than maximum balances, and assuming that filing in one country satisfies the other country.

The following 7 red flags should be corrected:

• Applying Modelo 720’s €50,000 threshold to FBAR
• Testing FBAR separately for each account
• Omitting jointly owned or signature-authority accounts
• Using only December 31 values for FBAR
• Omitting US accounts from a Spanish resident’s Modelo 720 analysis
• Assuming Form 8938 replaces FBAR
• Ignoring a Modelo 720 refiling event after a disposal or a qualifying €20,000 increase

Compare balances, ownership, authority, and thresholds separately for Spain and the United States. Do not copy one form’s account list without checking the other form’s definitions.

TFX explains how to fix common FBAR mistakes. Income-tax errors may require Form 1040-X or another amended-return procedure.

Not sure whether FBAR or Form 8938 applies? Check your foreign-account reporting before filing.

Learn more

Quick decision guide

A 5-question decision path identifies the main 2025 returns for most US expats. Start with Spanish residence, then identify Spanish-source income, foreign assets, foreign financial accounts, and special-regime status before selecting Modelo 100, 151, 210, 720, Form 8938, or FBAR.

Use the following 5 yes-or-no steps:

1. Were you a Spanish tax resident during 2025?
   Yes: review Modelo 100. No: review Modelo 210 for Spanish-source income.
2. Did Article 93 apply?
   Yes: review Modelo 149 election records and Modelo 151.
3. Did a Modelo 720 category exceed €50,000?
   Yes: review the March 31 filing requirement.
4. Did foreign financial accounts exceed $10,000 in aggregate?
   Yes: file FBAR.
5. Did specified foreign financial assets exceed the Form 8938 threshold?
   Yes: attach Form 8938 to Form 1040.

The resulting return path should then be checked for Form 1116, Form 2555, foreign entities, pensions, trusts, gifts, inheritances, and business activity.

Ready to simplify your US taxes while in Spain?

US filing obligations generally continue while living in Spain, and a 2025 return may involve Form 1040, Form 1116 or 2555, Form 8938, FBAR, and entity or trust disclosures. Coordinating the filings can reduce duplicated work and prevent inconsistent income, tax, and account values.

TFX can help with the following 3 outcomes:

• Coordinate US income and foreign-tax-credit reporting with Spanish records
• Identify common international forms and accounting-reporting obligations
• Prepare a clear filing process without requiring an in-person US appointment

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